Did you know, that the word “acceptor” has 5 (five) meanings. Well, what are they? First, the notion of acceptor is a homonym because its meanings have the same spelling and pronunciation but different meanings.
Acceptor has meaning in economics, and finance, chemistry and physics. Where, the acceptor has a meaning in the noun or noun class, so that the acceptor can express the name of a person, place, or all objects and everything that it contains.
Then, what exactly is the definition of acceptor in finance? Below will be explained more about the acceptor.
An acceptor is a third party who accepts responsibility for making payments in a money exchange account or bill of exchange. Bills of exchange usually have 3 (three) parties, namely drawer, drawee, and acceptor.
The Position Of Acceptors In The Economy
In business activities, consumer goods usually, there are consumers, retailers, manufacturers, and banks. If the consumer wants to buy goods from a retailer but the retailer does not have the goods, the factory has a stock of goods to be sold, requires cash but no one buys. While the bank has money but no one is borrowing, then business activity will cease.
This situation can be overcome by means of a money exchange account mechanism or also called a bill of exchange. The mechanism is the following:
Retailers come to the bank to borrow money to buy goods from the manufacturer with a promise to repay the loan within 90 days.
Then, the bank issues a money exchange account letter or bill of exchange signed by the retailer and the bank, then the bank pays the manufacturer some of the money after deducting the discount, say 20% per year from the amount according to what is stated on the bill of exchange.
The Bank in that case is positioned as a drawer or drawer, the retailer as an interested or drawer, the manufacturer as a payee or payee.
In the event that the drawee accepts the bill of exchange and is willing to pay at maturity, then the drawee also acts as an acceptor. Such a mechanism is what rolls out trading activities, where all parties benefit.
The position of the acceptor is an important part, so he will pay the bank some money in full as stated on the bill of exchange. Where, the bank earns income from the discount charged on the transaction.
Advantages of the Bill of Exchange mechanism
The bill of exchange mechanism has several advantages, including:
- As Evidence Under The Law
Bill of Exchange is a legal document that is valid and as evidence of some receivables. According to the document puller or drawer can sue in case of default.
- Specific amount and due date
The Bill of exchange is signed by both parties so that either the drawer or drawee who is the acceptor has also understood with certainty the amount of receivables and the due date.
- Discount Facility
The advantage for banks is that there is a discount facility imposed on the amount of receivables when the payee requires money immediately and in full amount. The discount will be charged to the drawing or acceptor when payment is due.
This Bill of exchange can be transferred to another party as an acceptor for debt payment. The acceptor here acts as a factoring giver.
- Acceptors Enjoy The Credit Period In Full
The acceptor cannot be required to repay the debt before maturity, so that the person concerned receives the benefits of the credit period in full.
- Changes In Legal Relations
Before the bill of exchange relationship, the buyer is the debtor, the seller is the creditor. The relationship changed after the bill of exchange, namely as a drawer or drawer and interested or drawe which also serves as an acceptor.
- Easy To Cash Out
Bill of exchange has a function as well as a backward check so that it can be transferred before maturity, if needed.
Characteristics Of Bill Of Exchange
As mentioned earlier, the acceptor is related to the bill of exchange. Therefore, to know more about the bill of exchange, then we also need to know about the characteristics or characteristics of the bill of exchange. Do you have a bill of exchange?
To find out, then you can refer to the discussion on this point. Here are some characteristics of the bill of exchange that you need to know.
- Payment deadlines do not have to follow a condition and obligations of a joint nature
The first characteristic of the bill of exchange is the existence of payment deadlines that do not necessarily follow a condition and obligation of a mutual nature.
Therefore, the bill of exchange can determine its own deadline. Even so, in making the bill of exchange must still be based on mutual agreement between the parties concerned.
- In Typing Documents There Should Be No Errors
The second characteristic of the bill of exchange is that in the typing of the document there should be no errors.
If there is an error in typing a document, then the document is considered invalid, so the transaction cannot be carried out. This is because the transaction that will occur will be considered invalid.
Therefore, before the bill of exchange document so, should be checked first, whether there is an error or not.
It would be nice, for the typing of bill of exchange documents is done by people who are experts. This is indeed necessary to do in order to reduce the risk of errors.
- If Any Errors Are Corrected By Yourself
The third characteristic of a bill of exchange is if any error is self-corrected. As it was explained earlier that an error in typing a bill of exchange, then the document is considered invalid. Well, if an error has occurred in the typing of the document or something else, then it must be corrected by yourself.