OPEN-ACCOUNT

Deferred payment without bank intermediation.

Definition

Open Account represents 80% of international trade by value — preferred instrument between established partners. Risks mitigated via Credit Insurance (Atradius, Euler Hermes), factoring, BPO (Bank Payment Obligation), supply chain finance.

Origin

Traditional commercial mode ; standardised by Incoterms 2020.

Example in context

Bosch buys from ZF in France with Open Account terms 60 days end-of-month.

Related terms

• Letter of Credit — alternative instrument.