{“content”:"## What Is Usance?
In international trade, usance (sometimes called tenor) refers to the allowable period of time between the date of a bill and its payment. This period can vary between countries, often ranging from two weeks to two months. Usance also entails the interest charged on borrowed funds.
Usance is derived from the action of usury and the economical use of goods for various purposes.
Understanding Usance
Usance is a key concept in transactions involving the purchase of items on credit. For instance, a company might buy materials from a supplier and receive the goods immediately. They get the bill on the same day but have a specified period\u2014say, up to 30 days\u2014to settle it. This 30-day period represents the usance for the sale.
When money is lent, usance represents the charged interest, serving as the profit for the lending principal.
Beyond lending, usance includes the broader economic process of using goods to fulfill needs. This comprises refining raw materials into finished goods or directly consuming goods to satisfy needs.
Related Terms: credit period, interest, usury, economic needs.
