Usance letter of credit

(Usance LC).

A usance letter of credit is a letter of credit payable at a predetermined future date, after the conforming documents are presented.

Usance LCs are also known as deferred payment LCs, time LCs or term LCs (contrasted with sight LCs).

See also

• Clean letter of credit
• Condition
• Confirmed letter of credit
• Confirming bank
• Conforming documents
• Documentary collection
• Documentary credit
• Irrevocable letter of credit
• Letter of credit
• Sight
• Standby letter of credit
• Trade finance
• Usance