Literally Acceptance is a thing in the form of a trade letter to pay the parties involved in a business relationship through an intermediary signed a signature contract through a bill of exchange that should have been paid on maturity period, if interpreted further in the term Trade Acceptance, this is trading securities in the form of drafts that can be traded to anyone before the maturity period, it is certain that securities containing orders from the maker of the letter to the obligor to pay a certain amount of money clearly written this trade involves domestic trade as well as international trade.
A bill of exchange for which the date of payment is not set is deemed to be paid on the day it is shown, but if there is no designation of a special place, then the place mentioned next to the name of the interested party shall be considered as the place of payment and also as the place of domicile of the interested party, then on the bill of exchange which is not indicate the place of withdrawal, is deemed to have been signed at the place listed next to the name of the withdrawer.
Of course, making an acceptance requires the most important conditions that must be met in order to be used based on its function, such as a statement of ability without any conditions as an attachment, which is clear that acceptance can switch functions, both for payment and billing and can be said to be valid if There is an acceptor’s signature.
Trade acceptances are usually carried out by writing the word “CAN” or “APPROVED” accompanied by a signature attached to the bill of exchange, and for the purpose of the acceptance, it is certain that you are interested in guaranteeing/not paying the bill of exchange on the day of payment due, to limit the amount certain amount of the nominal money stated in the bill of exchange (may accept some).
If the bill of exchange contains the signatures of people who according to law are incompetent or are manipulating to bind themselves using the bill of exchange, contain fake signatures, the signatures of people who for any other reason cannot bind the person – people who have put their signatures or people on behalf of other people whose signatures are contained in the bill of exchange, are valid in the eyes of the law and can be used or make disbursement payments.
In a buying and selling or in trading, of course we don’t just trade merchandise that has a small value, but sometimes when we want to buy a large asset or process a debt transaction, we need a sign of agreement in this case, so that our transaction process runs. in a safe and capable manner in relation to the law.
Apart from that, there are also types of trade which usually require a special proof, such as when we make a sale and purchase between countries or the import-export process, in which case we usually use a trade order. accepted by the buyer. In this way, the person conducting the export draws a bill of exchange for the person importing a certain amount of the price of the goods along with the costs involved. Therefore, in trading using a money order, there is usually a signature in the bill of exchange which we usually refer to as a trade acceptance.
Trade acceptance is a promise or agreement to make payment by the party who made the purchase by giving a signature on the bill of exchange, where the bill of exchange will act as an acceptance if the bill of exchange has been accepted by the buyer so that it can be traded. In other terms, if this acceptance is made, then the accepted note can be referred to as a promissory note so that it can be traded or sold to other parties.
Trade acceptance is a form of trade agreement, in which the debtor promises to pay his debts on a certain date without conditions and this is approved by affixing a signature on the bill of exchange. For example, there is person A and person B, person A sells goods to person B and person B buys goods on debt. Then person B signs a trade acceptance which states that he will pay his debt on that date without any conditions and person B is called an acceptor, that’s how simple it is.
Once a trade acceptance is signed by the buyer, the document will have legal force and can even be sold to other parties. The document can also be used as collateral for credit to banks or other financial institutions. Trade acceptance will increase the sense of trust between business partners, besides trade acceptance will also facilitate business transactions, especially if in large quantities.
In addition, for some parties, trade acceptance provides extra security for the seller. Because trade acceptances can be sold, the risk of default can be transferred to another party. For example, company A sells goods to company B with a value of 1 billion and company B states that it is able to pay a debt of 1 billion and an interest of 10% within the next 1 year. After the note is signed by company B, company A can sell the document to another party. Let’s say company A sells it to company C for 1.05 billion. So after this, company C is the one who will charge company B, company C benefits from the difference in interest to be paid. For company A, this is profitable because the risk will move to company C, especially if company A is in dire need of liquidity so that it cannot bear receivables for too long.
Example
Another case example is when company A’s trade acceptance documents are guaranteed by company A to the bank to borrow money, company A can be said to have no risk to the bank, because when company A fails to pay credit, the bank will charge company B which is the acceptor in the document. the. So indeed trade acceptance provides security and risk-free conditions for the seller.
If the acceptor cannot pay off his debt on the day specified in the trade acceptance, then the seller can sue him legally and ask for compensation. The seller as the holder of the trade acceptance has the right to collect and demand payment from the acceptor and this can be resolved through the applicable legal channels.
