Are deferred Credit and Usance Credit the same?
Kind regards
Heny
Are Deferred Credit And Usance Credit The Same?
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honeyryu
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RAKESHCH
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IMHO the answer is no but yes,reasons
1.Usance credit can call for Bill of exchange whereas deferred payment credit cannot.
2.Lets say tenor (90 days sight) , in usance the exporter gets paid at sight and the issuing bank will get paid by applicant after 90days,whereas in def credit exporter gets paid after90 days.
but in market both are used interchangeably.
1.Usance credit can call for Bill of exchange whereas deferred payment credit cannot.
2.Lets say tenor (90 days sight) , in usance the exporter gets paid at sight and the issuing bank will get paid by applicant after 90days,whereas in def credit exporter gets paid after90 days.
but in market both are used interchangeably.