Reply To: How long can an usance letter of credit be open for?

[Busra Aise]

Hi.

Usance letters of credit don’t say how long they can be used for, and neither the UCP 600 nor the ISBP say how long they can be used.

Letters of credit are made so that payment can be delayed, giving the buyer more time to inspect or even sell the product. However, local laws in the country of the issuing bank often set a time limit that the letters of credit must follow.

This means that when you use a usance letter of credit, you need to know how it applies to your own situation.