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'''English: [http://scm.gsom.spbu.ru/index.php/Open_Account Open Account]'''
'''English: [http://scm.gsom.spbu.ru/index.php/Open_Account Open Account]'''
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In an Open Account transaction, the exporter conducts international business in a manner similar to the way it conducts business domestically<ref> David, P.A., Stewart, R.D. International Logistics: The Management of International Trade Operations – Cengage Learning, 2010 – p.142. </ref>. The exporter just sends an invoice to the importer along with the shipment and trusts the customer to pay within a reasonable amount of time, commensurate with the credit usually granted in the country in which the importer operates, usually thirty to ninety days. It is essentially the conceptual opposite of Cash in Advance, as the exporter shows complete trust in the importer and ships the merchandise without any guarantee that it will be paid. The only recourse in case of non-payment is legal action in the importing country, a time-consuming and expensive process that exporters rarely undertake.
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== '''Principal Flow Chart of Open Account Payment with Components of Export Credit Risk Management''' ==

Версия 00:06, 31 июля 2014

English: Open Account

In an Open Account transaction, the exporter conducts international business in a manner similar to the way it conducts business domestically[1]. The exporter just sends an invoice to the importer along with the shipment and trusts the customer to pay within a reasonable amount of time, commensurate with the credit usually granted in the country in which the importer operates, usually thirty to ninety days. It is essentially the conceptual opposite of Cash in Advance, as the exporter shows complete trust in the importer and ships the merchandise without any guarantee that it will be paid. The only recourse in case of non-payment is legal action in the importing country, a time-consuming and expensive process that exporters rarely undertake.


Principal Flow Chart of Open Account Payment with Components of Export Credit Risk Management

References

  1. David, P.A., Stewart, R.D. International Logistics: The Management of International Trade Operations – Cengage Learning, 2010 – p.142.
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