A usance Letter of Credit can be ISSUED meaning that the payment is delayed until a period for time has PASSED or the buyer has had an opportunity to inspect or sell the related goods.

There is not a huge difference between usance and deferred payment LCS, although the latter are rarely issued.

The essential difference is the absence of the draft. The draft SERVES no significantly useful purpose in an LC anyway, so LCs calling for usance drafts would be just as EFFECTIVE if they did not call for the draft and were merely issued as a deferred payment LC.

A usance Letter of Credit can be issued meaning that the payment is delayed until a period for time has passed or the buyer has had an opportunity to inspect or sell the related goods.

There is not a huge difference between usance and deferred payment LCs, although the latter are rarely issued.

The essential difference is the absence of the draft. The draft serves no significantly useful purpose in an LC anyway, so LCs calling for usance drafts would be just as effective if they did not call for the draft and were merely issued as a deferred payment LC.