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1. Sight L/C means that payment is made immediately to the beneficiary/exporter upon presentation of the complied documents.
2. Usance L/C is known as deferred payment LC which is payable at a predetermined time / future date after the credit complied documents are presented.
usance L/C is a deferred payment L/C where the buyer pay to the seller at a latest date (ex: days after shipment) or other specified period of time already specified in the L/C terms.
sight L/C: when payment from the buyer to the seller is made immediately after receiving complying docs.
Sight Letter of credit - Immediate Payment of in a week or so.
Usance Letter of credit - Over a time. It may be 1 month to 6 months time.
Sight Letter of credit refers to the types of LC where the supplier receive payment upon presentation of document. in order word. The document sighted signify that the supplier has completed his own part of the bargain. I.e. Goods have been fully supplied.
Usance enable the buyer to receive the goods on the without on credit. In some countries, the bank facilitate usance by placing their credit line against the goods received. Payment is thereafter made at a later date. It is a form of credit facility for international trade.
