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The seller/exporter may be required to fulfill certain conditions listed in the Documentary Letter of Credit, such as providing proof of shipment of the goods sold to the buyer, before collecting payment from the bank. This particular method of payment provides assurance to the seller/exporter that the buyer/importer has the necessary funds for the transaction and is ready to send payment to the seller after the sale is complete. Usance Letter Of Credit (Usance LC)
An Usance Letter of Credit is a letter of credit that is payable at a specific time and after the presentation of certain necessary documents listed in the letter of credit. Unlike an At Sight Letter of Credit, where the issuing bank pays the beneficiary of the letter of credit immediately after the issuing bank has had the required documents in the letter of credit presented to them, with an Usance Letter of Credit, the issuing bank will defer payment until the end of an agreed upon term and once the required documents are presented to the issuing bank.
Twenty-first-century business practices are holistic: Not only are business owners expected to provide a quality product or service, but they are also expected to do business ethically and in a way that supports communities. In recent years, corporate social responsibility (CSR) has become a hot topic as companies strive to balance their need for profitability with strategies and policies that "do good" for people and the environment. Defining Corporate Social Responsibility Unfortunately, the practices of some businesses have left people thinking of "business" and "profit" as dirty words. This is because company processes and practices sometimes ignore genuine social issues, such as environmental sustainability, animal cruelty, human trafficking and the need to pay workers a living wage. However, many entrepreneurs, as well as consumers, are committed to supporting businesses that find ways to operate ethically. That is why social compliance, or corporate social responsibility, has become an important issue throughout multiple industries.
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