UPAS Letter of Credit: Usance Payable at Sight Explained
How a usance-payable-at-sight credit lets the seller be paid at sight while the buyer pays later.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
In a UPAS (usance payable at sight) credit the beneficiary presents usance documents but is paid at sight, because a bank finances the usance period for the applicant. The buyer repays at maturity and usually bears the interest. For the seller it works like a sight credit; check who pays the discount charges.
| Seller paid | At sight |
|---|---|
| Buyer pays | At maturity |
| Key clause | Discount/interest for applicant's account |
How it works
- Credit calls for a usance draft or deferred payment.
- Clause states usance is payable at sight.
- Bank pays seller and charges interest to applicant.
Check
- Clear wording that interest is for applicant.
- Which bank funds the usance.
- Draft tenor matches the credit.
Sources
General guidance, not legal advice. Your bank examines documents independently.
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