Define: Usance

UK Accounting Glossary

Definition: Usance


Quick Summary of Usance


Usance refers to the time allowed for the payment of foreign bills of exchange, according to law or commercial practice.



What is the dictionary definition of Usance?

Dictionary Definition


  1. The time allowed for the payment of short-term foreign bills of exchange. The time varies from country to country, however, in most countries, it’s typically set at 60 days.
  2. Formerly, the rate of interest applied to a loan.

Also:

  • Use.
  • Customary or habitual usage.

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Full Definition of Usance


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.


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Examples of Usance in a sentence


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.


Usance FAQ's



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https://payrollheaven.com/define/usance/
Modern Language Association (MLA):
Usance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 15, 2019 https://payrollheaven.com/define/usance/.
Chicago Manual of Style (CMS):
Usance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/usance/ (accessed: September 15, 2019).
American Psychological Association (APA):
Usance. PayrollHeaven.com. Retrieved September 15, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/usance/

Definition Sources


Definitions for Usance are sourced/syndicated from:


This glossary post was last updated: 29th January 2019.