Definition of Usance:
Another term for usage.
Usance applies to many items purchased on credit. For example, a company that purchases materials from a supplier will receive the goods today. The bill will be delivered today, but the company might have up to 30 days to pay it. The 30 days represents the usance for the sale.
In international trade, usance is the allowable period of time, permitted by custom, between the date of the bill and its payment. The usance of a bill varies between countries, often ranging from two weeks to two months. It is also the interest charged on borrowed funds. Usance is derived from the action of usury, as well as the use of goods for economic purposes.
Usual period allowed for payment of a bill of exchange (such as a check or draft), especially in international trade. Usance does not refer to a fixed period but varies according to customary practice (see Custom) in that trade or between the countries involved. See also usage and tenor.
The time allowed for the payment of foreign bills of exchange, according to law or commercial practice.
How to use Usance in a sentence?
- It follows that the problem could arise only in the case of bills payable on demand, or where a bill payable at another usance is discharge before its maturity.
Meaning of Usance & Usance Definition