Payment & Finance
What is Open Account?
Goods are shipped and delivered before payment is due — favorable to the buyer.
Open account terms mean the seller ships the goods and invoices the buyer, who pays at an agreed later date (e.g. 30/60/90 days). It is the most buyer-friendly arrangement and common between established partners, but carries the most risk for the seller, who may use trade-credit insurance to mitigate it.
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