Open Account
From Open Risk Manual
Definition
Open Account. It refers to trade transactions between a vendor and a buyer where transactions are not supported by any financial institution sor documentary trade instrument issued on behalf of the buyer or vendor. The buyer is directly responsible for meeting the payment obligations in relation to the underlying transactions. Where trading parties supply and purchase products and services on the basis of open-account terms, an invoice is normally raised and the buyer pays within an agreed time-frame.
