A trade acceptance is a sight draft that arises when credit is extended with the sale of goods.

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A trade acceptance is a type of sight draft that is created when credit is extended in a transaction involving the sale of goods. The seller draws up the draft, which is essentially a promise by the buyer to pay for the goods at a later date, and the buyer signs it to acknowledge their obligation to pay. This instrument is often used in international trade finance and can be a useful tool for managing cash flow and mitigating risks associated with non-payment.

A Trade Acceptance Is a Sight Draft That Arises When