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In simplest words, A sight LC means that whenever the Bill of Exchange is presented at counter, it must be paid then and there (ofcourse if the LC docx are in order).

While a Usance Bill is first presented then accepted and after that it is paid. Usance bills are usually for a period of 30, 60, 90 days.

So if a usance bill is of 30 days then it would be paid 30 days after presentation and acceptance.

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Q: Difference between sight letter of credit and usance?
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Usance Letter of credit?

Exporter will pay at the maturity date to the beneficiary if the documents are presented complied with terms of credit.


What is the difference between usance and deferred payment LC?

Ah, what a lovely question! Usance and deferred payment LCs both involve payment terms in trade transactions, but there's a subtle difference. Usance LC allows the buyer a specific period after receiving the goods to make the payment, while deferred payment LC allows the buyer to make the payment at a later date agreed upon in the LC. Both methods offer flexibility and trust between the parties involved in the transaction.


What is the period of time allowed in payment of bills of exchange?

usance


What is the difference between bill discounting and bill purchase?

This is a technical question and according to my opinion tenor is involved in the usance bill so we use the term of discounting whereas in sight bill no tenor is involved and we have to pay on sight or at one as per UCP 600 so we purchase the bill instead of discounting as it is payable on first demand. Saifullah Arif Soneri Bank Limited Dear, According to me, Demand Bill is payable on demand, supported by doccuments to title, so it is purchased at full value by bank, while discouting means at less than value and it is just like clean finance, because usance is other than demand, a period and uncertainity is involved, usually there are no document to title to goods, so bank keep high margin and pay less than face value.So we use Purchase of Bill in term of Demand Bill and Discouting of Bill in term of Usance Bill. Sheikh Junaid, Allied Bank Limited. According to me, In case of the bill purchase, the bill is purchased and that in case of bill discounting the bank is only financing against the said bill. The title of the bill would be transferred in favour of the bank in case of Bill purchase and whereas the title of the bill remains with the party in case of Bill Discounting. Further the responsibility of recovery of the amounts under the Bill purcahse would absolutely on the bank in case of Bill Purchase and the responsibility of recovery of the money under the bill discounting would be on the party. M.V Rao, Advocate, Hyderabad


What is certificate of deposit in India?

A CD is a negotiable money market instrument. A CD is issued as a Usance PromissoryNote for funds deposited at a bank or other eligible financial institution for a specifiedtime period.It is a discounted instrument.CDs are freely transferable by endorsement and delivery. Maximum tenor allowed in India is 12 year.