Kindly explain this payment terms "90% through LC with 90days usance period and balance 10% will be after delivery. LC will be opened 30 dyas prior to dispatch of material."
30 October 2012
This means for 90% of the total payment buyer has to open l/c in favor of seller and 90 days here signifies that a 90 days credit period has been allowed to buyer by seller to make payment(normally 90 days from b/l date). Balance 10% of the total payment is to be made after delivery of goods to buyer.
CAclubindia
