Usance Letters of Credit in International Trade

2174 reads · Last updated: January 9, 2026

Usance is a type of letter of credit used in international trade, which allows the buyer to make the payment within a certain period after receiving the goods. Unlike a sight letter of credit, a usance letter of credit grants the buyer a specific period (usually 30 days, 60 days, 90 days, or longer) to make the payment.

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