Lesson check0 / 2 answered · 0 correct
Check 1
What does usance tell you first?
Check 2
Is a 180-day tenor automatically impossible to finance?
Sight LC vs Usance LC
Understand when money is due and why '60 days' matters.
Sight
A sight credit points to payment without a future usance period after the relevant complying process is satisfied.
It does not mean money appears the second someone receives a PDF.
Usance
Usance means payment is due later after a stated period.
Examples may say 30 days, 60 days, 90 days or another agreed tenor.
After sight
Wording such as '60 days after sight' describes a future payment time linked to the stated sight event under the credit structure.
A learner should first remember: this is delayed payment, not immediate cash.
Why financiers care
A longer tenor means the financing party may carry risk for a longer time.
That does not automatically make the LC bad. It simply changes the risk and pricing discussion.
Remember thisUsance = payment later. Sight = no future usance period.
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