Documentary vs Clean Bankers' Acceptances

A documentary Bankers' Acceptance is an Acceptance in which the bank requires the customer to present commercial documents supporting the underlying trade transaction. They are typically used in connection with Letter of Credit transactions or Sight Draft payments for documents received under incoming collections.

A clean Bankers' Acceptance is one in which the bank does not require the customer to substantiate the underlying trade transaction. In this case, the customer is obligated to keep records and documents in its own files, and needs only to certify pertinent details to the bank. Clean Bankers' Acceptances are used primarily in connection with domestic or foreign open account or collection shipments.

Edited by Michael C. Dennis, author of "Credit and Collection Handbook."