A Banker's Acceptance (BA) is a time draft drawn on and accepted by a bank, commonly used to effect payment for merchandise sold in import-export transactions, and a significant source of financing used in international trade.
A documentary draft is a written order requiring the recipient to pay the amount specified on the document, either upon presentation (sight draft) or at a fixed future date (time draft).
A time draft that is guaranteed by a non-bank firm and sold in the secondary money market. It is similar to a banker's acceptance but more risky.
