Unconfirmed acceptance credit means that the buyer takes the risk that payment will not be made, due to any number of contingencies such as shipment non-delivery, confiscation by customs authorities, or any other problems.
It also transfers the risk of non-delivery to the recipient, because once the seller places the product in the hands of the shipping company, the seller has complied and will be paid; if the shipment does not arrive, is delayed, or other problems occur, the buyer cannot stop payment or otherwise prevent redemption of the acceptance credit.
Banks may also create an acceptance credit facility allowing a company to issue time drafts not linked to specific shipments in order to provide general working capital finance.
Under the arrangement the issuing company presents bills of exchange to the bank for acceptance, confirmation and sale at a discount to face value (representing the finance cost until maturity).
While popular in the pre-electronic era, such facilities have since been widely replaced by financing arrangements which do not require the issue of paper.