The banker’s acceptance (BA) is a key financial instrument that secures international trade. A BA is type of time draft, or short-term loan. Specifically, a banker’s acceptance is a promise to pay a set amount to a predetermined recipient at a future date, guaranteed by a bank. BAs represent money that is accessible in the future. A banker’s acceptance is issued by a payer to the recipient, like a post-dated check. In contrast to a post-dated check, banker’s acceptances are tradable on the secondary market. Before the future date occurs, while the BA is still immature, it may be sold at a discount.