Letter of Credit Forum

Short answer:

An Acceptance letter of credit is available by presentation of compliant documents and a bill of exchgange payable at a determinable future date, drawn on either the issuing bank or the nominated bank (as the case may be).

An "acceptance" of the bill of exchange by the drawee bank commits the accepting bank to irrevocably pay the value of the bill of exchange at maturity and this obligation is bolstered by the applicable law of negotiable instruments in addition to the underlying LC rules (UCP600). The commercial advantage with an accepted bill of exchange is that the drawer (or holder in due course) is potentially able to "discount" the instrument on the market and receive early payment. Alternatively, the beneficiary may approach either the nominated bank or the LC issuing bank to discount the proceeds      

Acceptance letter of credit does not promise to pay the beneficiay immediately upon presentation of the customary documents and has some additional requirements of time or term draft drawn on a particular bank which is different then a normal letter of credit