The German export merchant, in financing his foreign trade, selling on term credits, say, six months to maturity, and desiring to have funds made available to him immediately, so as not to tie up his capital, in expectation of payments by the buyers at maturity, does not draw on the oversea's buyer, for this would be contrary to the terms of sale, and the draft would undoubtedly not be accepted. The seller, therefore, arranges with his banker to accept a draft drawn on the strength of the sale. The banker would then accept this draft, usually drawn for half the time, say three months, with option of renewal. The paper then becomes eligible for rediscount with the central bank. Imports are financed by the German banks in practically the same way as by the English institution.