Acceptance Credit is: Definition, Work Process, Withdrawal Methods, and Withdrawal Limitations

As a consumer in the banking industry, you must know what credit or loans are. Acceptance credit is one of the many types of credit offered by banks.

Credit or loans are usually divided into active and passive parts. One of the active bank products is acceptance credit. Maybe there are some people who don't understand the definition of accepted credit and examples. For more information, see the next article!

What is an Acceptance Credit?

In general, credit is a loan provided by a bank to encourage local economic growth. One of the most common types of credit is acceptance credit, which is included in the active type. This product is usually intended for small businesses and other customer needs.

Acceptance credit is a type of payment in the form of a money order guaranteed by a bank from an individual account owner. Companies usually use acceptance credit to make large transactions because it is considered quite safe. On the other hand, acceptance credit also functions as a short-term debt instrument.

Banks provide loans in the form of acceptance credit based on the value of the notes issued by the customer. After the note is traded by related parties, the money is given to the bank as collateral. After this process is complete, the bank will issue a credit card to the customer.

Acceptance Credit Work Process

Acceptance loans are made based on the loan amount given by the bank to customers who are entitled to money orders.

Related parties will sell draft documents that have been issued to registered customers as bank loans. After that, the customer must return the approved shipping documents to the importer.

Depending on people's demand, money transfers will occur between countries or between regions. The client will then receive a credit card from the bank without having to carry cash. Clients will receive collateral in the form of securities other than credit cards.

By considering the work process above, it can be concluded that the purpose of bank acceptance is to help both parties achieve their respective goals. This will definitely have an impact on the economy, both debtors, society, and creditors.

Withdrawal of Accepted Credit using the Revolving Method

Acceptance credit is a type of short-term payment guaranteed by a bank. Therefore, if the relevant bank provides prior notification, the credit withdrawal process will run smoothly. For credit withdrawals, the Customer's Money Receipt (TTUN) is the media used.

One type of bank product that uses a revolving system is a loan based on acceptance credit. Because this type of loan is short term, you will be charged effective interest for about six to twelve months. Your credit can only last for twelve months.

Restrictions on Acceptance Credit Withdrawals

What is an accepted credit and how is the provision used? Simply and precisely, the province that will be given for the procedure for using bank receipts is at least 1%, with the charging system determined for the province.

In addition, the method of paying off receipts is very simple because all debit balances use the credit provided at the due date to pay. The following are limitations for withdrawing credit for bank receipts: 

1. The minimum limit for bank acceptance credit withdrawals is IDR 25.000.000.

2. Maximum credit withdrawal limit: The maximum that can be used by bank receipts for credit withdrawals is the large credit limit that has been approved. 

3. The time needed to complete a bank loan ranges between two days and a maximum of three days, depending on the specified credit period. 

Therefore, this is interesting information about a detailed and accurate explanation of what an accepted credit is and how the credit process works so that you can maximize the benefits. Hopefully this information makes it easier for people to choose.