Usance Credit

Summary of Usance Credit

Also known as a time credit, a Letter of Credit (q. v.) that provides that the drafts drawn under the credit will mature thirty, sixty, or more days, up to nine months, after sight or date. A letter of credit providing for settlement more than nine months from shipment of the goods is normally in the form of a Delayed Payment Credit (read this and related legal terms for further details).

(Main Author: William J. Miller)