Bankers’ acceptance

Bankers’ acceptance is a source of financing which protects you from interest rate increases over the term of the loan, in addition to offering more attractive borrowing conditions than other types of short term financing. This low-cost financing solution is an excellent substitute to traditional short term loans and the pre-established term helps determine the exact cost of the loan over the chosen period.

Characteristics
Term Term of 30 to 364 days
Rate Based on daily money market conditions
Usually represents an intermediate tool, with returns between that of a 91-day Canada and provincial T-bills, a bank-issued bearer term note and the prime rate on bank loans.
Amounts Authorized credit must exceed $500,000
Advances Cash advances by amount of $100,000
Subject to fixed rate stamping fees