Usance Letter of Credit

'Usance' is the period allowed for payment of a bill of exchange. Under a usance LC, the bank accepts a time draft or gives a deferred payment undertaking, and pays at maturity, for example 90 days after sight or 180 days after the bill of lading date.

Types:

• Acceptance LC: the bank accepts a usance bill of exchange drawn on it and pays at maturity.
• Deferred payment LC: the bank undertakes to pay at maturity without a bill of exchange.

The importer receives the documents and the goods immediately but pays later, so it can often sell the goods and pay from the proceeds. The exporter is still protected by the bank's undertaking, and can obtain early funds by having the accepted bill or deferred payment obligation discounted.

In a supplier's credit usance LC, the exporter bears the interest cost of the credit period. In a buyer's credit arrangement, a bank finances the importer, and the exporter receives payment at sight.

Usance LCs carry credit risk for the issuing bank over a longer period, and in Nepal they are subject to NRB's foreign exchange directives on maximum usance periods and permitted goods.

'Usance' विनिमय पत्र भुक्तानीका लागि दिइने अवधि हो। म्यादी प्रतीतपत्रमा बैंकले म्यादी विनिमय पत्र स्वीकार गर्छ वा स्थगित भुक्तानीको प्रतिबद्धता दिन्छ र म्याद पुगेपछि (जस्तै दृष्टिपछि ९० दिन वा बिल अफ लेडिङ मितिपछि १८० दिन) भुक्तानी गर्छ।

प्रकार: स्वीकृति प्रतीतपत्र (बैंकले विनिमय पत्र स्वीकार गर्ने) र स्थगित भुक्तानी प्रतीतपत्र (विनिमय पत्रबिना)।

आयातकर्ताले कागजात र सामान तुरुन्त पाई पछि तिर्ने भएकाले सामान बेचेर तिर्न सक्छन्। निर्यातकर्ता बैंकको प्रतिबद्धताबाट सुरक्षित रहन्छन् र स्वीकृत बिल डिस्काउन्ट गराई छिटो रकम लिन सक्छन्। सप्लायर्स क्रेडिटमा ब्याज लागत निर्यातकर्ताले र बायर्स क्रेडिटमा आयातकर्ताले बेहोर्छन्। नेपालमा अधिकतम म्यादी अवधि र वस्तु नेपाल राष्ट्र बैंकको विदेशी विनिमय निर्देशनले तोक्छ।