Hello.
One of my potential American customer want us to accept L/C 180days. But our company only accept irrevocable documentary L/C at sight. So I insist on that.

What do you think about that? I mean L/C 180days --- that's half a year! Can someone tell me your opinion?
Thanks.

Replying to [Fei Wong]: half a year L/C - Although L/C is a pretty secure way of trading, but say him that its our first contract so you are reluctant to do that long L/C and there are always some financial issues at your end - talk to your management, and if you can, then offer him L/C for 30 days (at least it doesn't look scary). don't forget to add additional costs of interests as your money will be blocked for a month at least.

I don't know the banking structures of USA, but in Pakistan, there can be no fraudulent activity when working with L/C (I hope USA got more strict regulations), but say him to open L/C for 30 days form a legitimate bank .. if its some bank that you haven't heard of, then check its credentials on the web.

I don't know what product is it, but L/C 180 days means that he will sell the products by then and remit you the amount after selling the item.

hope it helps

Replying to [fahadbk]:
Dear fahadbk, thank you for your advice.
It's really helpful to me.

Replying to [Fei Wong]: you are welcome :)

Replying to [fahadbk]:

A very good suggestion. Try the shorter route like 30 days. Use a reputed bank LC. If things work out, 180 days is no big deal (provided you can finance your activities that long!). Better to play safe initially.