Document background
The Usance Letter of Credit is essential in international trade transactions where buyers require extended payment terms while sellers seek payment security. This document, governed by Dutch law and international banking practices, provides a structured framework for deferred payment arrangements in cross-border transactions. It specifies all terms, conditions, and documentation requirements, typically including detailed information about the goods, shipping requirements, and payment terms. The document adheres to both the Uniform Customs and Practice for Documentary Credits (UCP 600) and Dutch legal requirements, making it particularly suitable for transactions involving Dutch entities or where parties choose Dutch law as the governing law. It enables importers to obtain credit terms while providing exporters with a reliable bank guarantee of payment.
