Disadvantages Of Bankers Acceptance. The payment is accepted and guaranteed by the bank as a time draft to be drawn on a deposit. Banker's acceptance is one of those complicated word combination which make people rack their brain trying to understand what it is and how it works.
Originally, such bills were all transaction specific. The rules governing whether an acceptance meets eligibility requirements are important for two major reasons. The use of a banker's acceptance usually depends a great deal on the reputation of the bank within the financial community.
It helps to eliminate the payment Talking of disadvantages, it has one major one.
The rules governing whether an acceptance meets eligibility requirements are important for two major reasons.
Not all banks deal in BA, and even the ones that do, will evaluate you fully before agreeing to anything. It's possible for sophisticated hackers to steal information as its transmitted to online banks, leading to identity theft. Let us look at the advantages and disadvantages of e-banking Bankers acceptances are sometimes eligible for purchase and rediscount by Federal Reserve banks.