Trade/credit calls for time draft
Drawer creates a bill of exchange payable at a future date or stated tenor.
Drafts · From time draft to accepted bank obligation
Banker’s Acceptance Procedure
See how a trade draft can become a bank acceptance and later be discounted.
Draft presented to bank drawee
The relevant bank receives the draft with required documents/conditions.
Bank accepts
If the bank is obliged/willing and conditions are satisfied, it accepts the draft, creating its obligation to pay at maturity.
Accepted draft returned/held
The holder now has an accepted bank obligation rather than only the original drawer’s order.
Optional discounting
A bank/financier may purchase or discount the acceptance before maturity subject to credit and documentation.
Maturity payment
The accepting bank pays the holder at maturity according to the instrument/settlement arrangements.
What can change from bank to bank?
The commercial objective may be similar while the bank’s internal route differs. Credit approval, collateral, compliance review, legal wording, message choice, fees and cut-off times can all vary. Always distinguish those bank-specific steps from the incorporated rules and the purpose of the SWIFT message.
Reviewed: September 2026Standards and bank policy can change.How MyGreed classifies proceduresOfficial-source directory
Procedure ruleThis is a typical learning flow. Exact sequencing, messages, approvals and documents can vary by bank, rules, law and negotiated transaction.