Did you know that the word “Acceptor” has 5 (five) meanings. Well, what are they? First, the meaning of Acceptor is a homonym because the meanings have the same spelling and pronunciation but different meanings.
Acceptor has meaning in the fields of economics, and finance, chemistry and physics. Where, the acceptor has a meaning in the class of nouns and nouns, so that the acceptor can state the name of a person, place, or all things and everything they have.
Then, what exactly is the meaning of acceptors in the financial sector? Below will be explained more about the acceptor. Come on, find out together the following explanation.
Definition of Acceptor
The acceptor is a third party who accepts responsibility for making payments in a money exchange account or bill of exchange . Bill of exchange usually has 3 (three) parties, namely drawer, drawee, and acceptor.
Acceptor Position in the Economy
In business activities, consumer goods in general, there are consumers, retailers, manufacturers, and also banks. If a consumer wants to buy goods from a retailer but the retailer doesn’t have the goods, the factory has stock of goods to be sold, it requires cash but no one is buying. Meanwhile the bank has money but no one is borrowing it, so business activity will stop.
This situation can be overcome by means of a money exchange account mechanism or also called a bill of exchange . The mechanism is as follows:
Retailers come to the bank to borrow money to buy goods from manufacturers with promises to pay off 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 a discount, say 20% per year from the amount stated on the bill of exchange .
The bank in this case is a drawer or drawer, the retailer is the drawer or the drawer, the manufacturer is the payee or payee. In the event that the drawee receives a bill of exchange and is willing to pay when it is due, the drawee also acts as the acceptor. It is this kind of mechanism that rolls out trading activities, where all parties benefit.
The position of this acceptor is an important part, so that he will pay the bank some money in full as stated in the bill of exchange. Where, the bank earns income from the discount imposed on the transaction.
Advantages of the Bill Of Exchange Mechanism
The bill of exchange mechanism has several advantages, including:
1. As Evidence Based on Law
Bill of Exchange is a valid legal document and as proof of the existence of several receivables. According to the document, the drawer can sue in the event of a default.
2. Specific Amount and Due Date
The bill of exchange is signed by both parties so that both the drawer and the drawee who are the acceptors also understand with certainty the amount of receivables and the due date.
3. Discount Facility
The advantage for the bank is that there is a discount facility that is imposed on the amount of receivables when the payee or payee requires money immediately and in full amount. The discount will be applied to the drawing or acceptor when payment is due.
4. Transferrable
This bill of exchange can be transferred to another party as the acceptor for debt repayment. The acceptor here acts as a factoring factor.
5. The acceptor enjoys the credit period in full
The acceptor cannot be asked to pay the debt before the maturity date, so that the person concerned receives the full benefits of the credit period.
6. Changes in Legal Relations
Prior to the existence of a bill of exchange relationship, the buyer is the party who owes, the seller is the party who owes. This relationship changed after there was a bill of exchange, i.e. as a drawer and interested or drawe who also has a position as acceptor.
7. Easy to Cash
The bill of exchange also has a function as a post-dated check so that it can be transferred before maturity, if needed.
Characteristics of Bill Of Exchange
As previously explained, the acceptor is related to the bill of exchange. Therefore, to get to know more about bills of exchange, we also need to know about the characteristics or characteristics of bills of exchange. Do you already know the characteristics of a bill of exchange?
To find out, you can refer to the discussion at this point. Here are some characteristics of the bill of exchange that you need to know.
1. Payment deadlines do not have to follow a condition and obligation that is shared
The first characteristic of a bill of exchange is that there is a payment deadline that does not have to follow a condition and obligation that is shared. Therefore, the bill of exchange can determine its own deadline. Even so, in making a bill of exchange it must still be based on a mutual agreement between the parties concerned.
2. There are no errors in typing documents
The second characteristic of a bill of exchange is that there should be no mistakes in typing the document. If there is an error in typing the document, then the document is considered invalid, so that 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 is prepared, it is better to check it first, whether there are errors or not.
It would be nice, for the typing of bill of exchange documents to be done by people who are experts. This really needs to be done in order to reduce the risk of errors.
3. If there is a self-corrected error
The third characteristic of a bill of exchange is that if there is a mistake it is self-corrected. As previously explained, an error in typing a bill of exchange means that the document is considered invalid. So, if an error has occurred in typing a document or something else, it must be corrected by yourself.
In this case, any errors will be corrected by the person concerned, either by hiring a third person or not. The thing that needs to be underlined from the characteristics of the three bills of exchange is that any mistakes must be really considered so that the same mistakes do not occur in the future.
4. Each Payment Must Be Paid On The Due Date
The fourth characteristic of a bill of exchange is that each payment must be paid on the due date. Therefore, if it is not due, payment may not be paid. However, if you exceed the maturity, you will usually get a late fee. In general, this fine has been agreed upon by the parties concerned.
5. Every Requirement Must Be Well Fulfilled
The last characteristic of the bill of exchange is that every requirement must be fulfilled properly. This must be done so that all transactions can be considered valid, so that neither party is harmed.
So, when reading a bill of exchange document, all requirements must be considered. This needs to be done so that every requirement can be fulfilled, so that the transaction is successful.
Those are some of the characteristics of a bill of exchange. To find out more about the bill of exchange, we also need to know the aspects of the bill of exchange. In the following discussion we will discuss aspects of the bill of exchange. So, keep reading this article until it’s finished, Matobers.
Aspects of Bill Of Exchange
As explained in the previous discussion, the seller as a creditor can issue a money exchange account and become a drawer. Therefore, the amount of money listed on the bill of exchange can be cashed by the drawer.
Where the document is called a bill receivable or an acceptable bill. On the other hand, the buyer as the debtor acknowledges that this is the same card and becomes interested or the drawer also acts as acceptor.
The acceptor’s position in the bill of exchange mechanism benefits from being able to enjoy the credit period in full, say for 90 days during which time he benefits from the circulation of money he holds.
Acceptors can also be played by financial institutions or banks that benefit from discounts. It is necessary to have an attitude statement as an acknowledgment or acceptance of this bill of exchange document which is applied to the relevant bill of exchange explicitly by affixing the words accept to the document.
In that case, this action is called an acknowledgment by the bank or bank acceptance which makes the bank function as an acceptor. If the purchase serves as the acceptor of a bill, then in that case it is known as trade acceptance.
In both cases, the function of the acceptor is to act as a guarantor for payment at maturity or earlier. Interested or drawee can finalize his position by affixing the word accept to this bill of exchange document and therefore functions as acceptor.
The acceptor can thus be defined as a party that accepts its function as an attractor or drawee and is obliged to pay an amount of money as stated in the bill of exchange.
To find out more about bills of exchange or acceptors, there is nothing wrong with knowing simple acceptor examples which will be discussed in the following discussion.
Acceptor Example
A simple example of an acceptor is a bank that receives checks drawn against it and assumes responsibility for payment. Where, companies X, Y, Z have paid electricity company ABC via a check drawn at bank DEF. When the ABC electricity company presents a check for payment, and the bank agrees to pay the check, then the ABC electricity company is the acceptor.
Thus the discussion regarding the meaning of acceptors to examples of acceptors. Hopefully the information that has been described above can add insight to knowledge and help readers.