Documents Against Acceptance
Category: Payments
Definition (plain English)
A documentary collection where documents are released after the buyer accepts a time draft promising payment on a future due date.
Why it matters commercially
D/A improves buyer liquidity but leaves the seller exposed after document release, so creditworthiness, country risk, recourse, and insurance matter more than under D/P.
Example
A seller considered D/A 60 days after sight only for an established distributor with approved credit, insured receivables, and a clear overdue escalation path.
Common mistake
Using D/A because the buyer asks for credit without treating it like open-account risk backed by a signed draft, credit check, and collection plan.
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