Usance usually applies to items or goods purchased on credit. Usance may also mean the interest that will be charged on the person who has borrowed some amount of money. Thus, usance means the profits earned from the lending of principal.
Usance refers to the utilization of economic goods to satisfy needs. In manufacturing, “usance” means “inputs.” It is used in “usance bills.
In today’s financial world, the term usance denotes the period of time between the date of the bill and the payment of the bill, which is allowed by law. Usance differs from country to country. Some countries may have a usance period of as little as 2 weeks, while some others may have a usance period of up to 2 months.