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What is the difference between Usance LC and DA?

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Question added by Jeyasanjivan Jey , Student Ambassador , Unitemps, City University
Date Posted: 2018/09/28
Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Usance LC is a letter of credit payable at a predetermined time after the presentation of conforming documents. These are also called time L/C or deferred payment L/C and are the opposite of L/Cs payable at sight.

Whereas "DA" or As I assume D/A "Documents Against acceptance" is an arrangement in which an exporter instructs a bank to hand over shipping and title documents to an importer only if the importer accepts the accompanying bill of exchange or draft by signing it.

 

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