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Usance Bill meaning

Furniture and Home Decoration Goods
From Australia
To Russia
300 views / 0 experts
May 20, 2021

What is an Usance Bill?

1 answer

May 20, 2021

Under D/A terms, the exporter draws the Bill of Exchange with grant of credit term called “Usance Bill” on the importer. “Usance” means the time limit for the drawee to honor the bill. With this arrangement, the importer is allowed a grace period for the payment (from 30 to 180 days after sight). This method poses a great advantage for the importer because he can sell the goods during the credit period and pay later. However, for exporter, this is even more risky then D/P terms due to obvious reasons.

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