Trade and customs
DA (documents against acceptance)
Definition
A documentary collection where documents are released when the buyer accepts a bill of exchange to pay at a later date.
Under DA the buyer receives the shipping documents by accepting a time draft, for example payable 60 or 90 days after the bill of lading date. The buyer gets the goods before paying, so DA is effectively supplier credit.
Sellers usually offer DA only to established customers or with credit insurance.
Related terms
- Letter of credit (LC)A bank's undertaking to pay the seller when the seller presents documents that comply with the credit's terms.
- TT (telegraphic transfer)A direct bank wire transfer, used for advance payment or payment after shipment.
- DP (documents against payment)A documentary collection where the buyer's bank releases the shipping documents only when the buyer pays.
- Proforma invoiceA preliminary invoice that sets out the offer before shipment, used to confirm the order, open an LC or make an advance payment.