Monthly Archives: May 2023
Posted: May 22, 2023
A brief overview of Open Account Trading
When navigating the world of global commerce, we often come across a term instrumental in shaping international trade dynamics - open account trading. This is a key mechanism in global trade transactions, where buyers receive goods before the payment is due. When effectively used, open account trading allows businesses to effortlessly manoeuvre through the pitfalls of international trade whilst mitigating financial risks. In this article, we will explore questions such as "What exactly is open account trading?" and "How does it work?" while also touching on related concepts, such as the role of credit trade insurance and the challenges of managing payment delays. In doing so, a comprehensive understanding of the concept will be achieved.
Understanding Open Account Trading