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A usance letter of credit gives the buyer a payment to pay later. Both the buyer and the seller have already agreed on the terms of payment. The usance letter of credit can be divided into two groups based on its tenor. The usual tenors are:
1. After Bill of lading (B/L), payment must be made within 90 days.
2. This means that after the B/L is issued, the buyer has 90 days from the date of the B/L to make the payment for the goods.
3. Payment due within 30 days after sight.
This means that the buyer has 30 days from the date that the issuing bank receives the documents to pay for the goods.