UK Accounting Glossary
Usance refers to the time allowed for the payment of foreign bills of exchange, according to law or commercial practice.
the period of time permitted by commercial usage for the payment of a bill of exchange (especially a foreign bill of exchange).
In international trade, usance is the allowable period of time, permitted by custom, between the date of the bill and its payment. The usance of a bill varies between countries, often ranging from two weeks to two months. It is also the interest charged on borrowed funds.
The terms also refers to the utilisation of economic goods to satisfy needs. In manufacturing, “usance” means “inputs.” It is used in “usance bills.” This terminology is used in banks in India, when dealing with Forex.
I’ll open a 240-day usance L/C for the two thirds of your financing.
Our agents have advised us to stipulate that you grant us an additional 30 days usance on all payments.
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This glossary post was last updated: 29th January 2019.