Quoting from [rajaram]:


Is It good to accept the 360 days usance L/C ? what does it mean , Is it good for the supplier ?

Are you and the buyer long time trading partners?  If not this not good for you.  The reason being is you will not be paid for a year for the products you have provided them.  So as a matter of fact you are actually financing the buyers business. 

You can also look at it like this.  You send the product to the buyer he recieves the product and then sells it within 90 days.  That means that the profit he has made he is drawing intrest on or buying other products form someone else.  While you are waiting to be paid. 

If this is a first time buyer it is best to ask that they open a CILC payable on sight of draft and documents.  However if you are willing to do this for a new buyer, insist that they also open a SBLC in your favor as this is your guarantee of payment.

Ranger