A draft due at a future date or after a specified period of time that has been signed by the buyer…

➤ How does a trade acceptance differ from a sight draft?
A sight draft is payable on presentation to the drawee, so payment is due immediately when they see the document. A trade acceptance is a type of time draft that the buyer signs to accept future payment on a specified date. The trade acceptance defers cash flow and can be used for financing or discounts.