Payment terms in the corridor: open account and the alternatives

← Mexico Trade Corridor

Mexico Trade Corridor · Corridor guide · B. Money in the corridor

Companies in the Mexico-US corridor often sell on credit, and many buyers pay late. This guide sets out the terms in use, the tools sellers use to protect themselves, and where they need working capital.

Published October 23, 2026 · Facts as of October 23, 2026 · 9 min read · Sources listed at the end · Rules as of October 23, 2026

Facts as of October 23, 2026. This page states the facts as they stood on that date. Tariffs, rules and figures may have changed since publication. Tariffs and trade policy change often, so we review these pages every month and update them.

About 30%Share of B2B sales in Mexico made on credit terms, 2026 survey ¹

7 in 10Mexican companies that report late payment from B2B customers ¹

About 1/5Share of B2B invoices in Mexico that are overdue ¹

30 to 45 daysHow late many importers in Mexico pay on existing contracts, per the US Commercial Service ²

What is it?

Payment terms set when and how a buyer pays a seller. On open account, the seller ships first and the buyer pays on a later date. In Mexico, about 30% of B2B sales are made on credit terms, and two- to three-month terms are more common than elsewhere in the region ¹.

Why does it matter?

On credit terms, the seller carries the commercial risk and funds the wait. About seven in ten Mexican companies report late payment from B2B customers ¹. The US Commercial Service says many importers in Mexico pay 30 to 45 days late on existing contracts ².

How does it work?

Buyer and seller agree the terms in the purchase order. The seller ships, issues an electronic invoice (CFDI) and waits for the due date. Sellers manage the risk with upfront payment from new buyers, credit insurance, early payment discounts and finance against the invoice ¹.

In this guide

1. Which payment terms do corridor traders use?
2. How late do buyers in Mexico pay?
3. How does an open account sale run between Mexico and the US?
4. How do sellers protect themselves?
5. Where does the seller need cash, and how is it financed?
6. What should traders watch next?

01Which payment terms do corridor traders use?

Trade between companies uses four main payment terms. They run from cash in advance, which protects the seller, to open account, which favors the buyer. The Ossiano Trade Finance Guide explains open account, letters of credit and documentary collections in full. This guide covers what is different in the Mexico-US corridor.

There is no published figure for the share of Mexico-US trade paid on each term. Survey data for Mexico shows how common credit terms are. Atradius finds that about 30% of B2B sales in Mexico are made on credit terms. Half of businesses set terms of up to one month, and two- to three-month terms are more common in Mexico than in the region ¹. Nearly half of firms report a higher share of credit sales in recent months ¹.

Bank data points the same way. The ICC Trade Register 2025 reports that trade finance growth over the last decade has moved to working-capital products. BCG forecasts that documentary trade will grow 3.1% a year from 2024 to 2029, against 4.2% for receivables finance ⁵. In 2019, BCG, SWIFT and ICC estimated that open account trade made up 45% of bank trade finance revenues ⁶.

Compare

Payment terms in the corridor, from the seller's side

Each term is explained in full in the Ossiano Trade Finance Guide.

Term	Who carries the risk	Where it appears in the corridor
Cash in advance	The buyer. It pays before the goods ship.	New buyers. Mexican firms ask for upfront payment more often than their regional peers 1.
Letter of credit	The issuing bank, which pays against compliant documents 7.	Sellers with no history with the buyer. Requiring a confirmed letter of credit can cost US exporters sales in Mexico 2.
Documentary collection	The seller. Banks handle the documents but take no payment obligation 7.	A lower-cost step between a letter of credit and open account 7.
Open account	The seller. It ships first and waits for the due date.	Sales on credit terms. Two- to three-month terms are more common in Mexico than in the region 1.

02How late do buyers in Mexico pay?

Late payment is common. About seven in ten Mexican companies report late payments from B2B customers, and overdue invoices average about one fifth of all B2B invoices ¹. That share is slightly below the regional benchmark, and Mexican firms are more likely than regional peers to report fewer overdue invoices ¹. Most firms put bad debt below 1% of revenue, but some large trade-sector firms report up to 10% of sales ¹.

US sellers often wait longer. The US Commercial Service reports that many importers in Mexico pay 30 to 45 days late on existing contracts. Collecting after non-payment can be hard and may need travel to Mexico and a lawyer ².

Credit is also tight on the buyer's side. Small and medium-sized firms, or SMEs, make up 95% of the Mexican private sector, and most have limited access to bank credit ². In practice, a supplier's payment terms often stand in for the bank credit the buyer lacks.

Goods cross first and payment follows. Many importers in Mexico pay 30 to 45 days late on existing contracts, according to the US Commercial Service.

03How does an open account sale run between Mexico and the US?

The steps follow any open account sale, with local points on the invoice and the contract. In Mexico, the seller issues an electronic invoice, the CFDI, and the payment clock usually starts from the invoice date or from the buyer's approval of the invoice. Our guide to electronic invoices (CFDI) explains why lenders check it.

The contract should name the net terms, the day the clock starts, the currency and a rate for late payment. Mexico's Commercial Code, article 362, sets interest from the day after the due date at the agreed rate, or at 6% a year when no rate was agreed ⁴. The article refers to mercantile loans, so ask a lawyer whether it covers an unpaid invoice. A rate written into the contract avoids that question.

Currency matters too. A 60-day term is also 60 days of exchange rate exposure. See paying in dollars, earning in pesos.

1. Terms agreedThe purchase order sets the days, for example 30, 60 or 90, and the day the clock starts.
2. Goods shipThe seller ships by truck, rail or sea. The buyer receives the goods before it pays.
3. CFDI issuedThe seller issues the electronic invoice. The buyer checks and approves it.
4. Due dateThe buyer pays on the agreed date, or late. Disputes and deductions can cut the amount.
5. Cash inThe seller receives payment, or claims late interest under the contract.

04How do sellers protect themselves?

Mexican firms use several tools at once. Atradius reports that they ask for upfront payment more often than regional peers, keep bad debt reserves, offer early payment discounts and use credit insurance at about the regional average ¹.

US exporters face a trade-off. A letter of credit gives the seller payment assurance from a bank, and a documentary collection costs less because banks handle the documents but take no payment obligation ⁷. The US Commercial Service warns, however, that requiring a confirmed letter of credit or cash in advance can cost US exporters sales in Mexico. It suggests buyer financing or export insurance from EXIM instead ². Our guide to US export credit for buyers in Mexico covers these programs.

Checklist

Before you sell on credit in the corridor

• Check the buyerAsk for trade references and financial statements before the first sale on credit.
• Ask new buyers to pay upfrontMexican firms ask for upfront payment more often than their regional peers ¹.
• Write the terms downName the days, the day the clock starts, the currency and a late-payment rate in the contract.
• Reward early paymentAn early payment discount can shorten the wait. Mexican firms use them ¹.
• Insure the receivableCredit insurance pays most of a covered unpaid invoice. Mexican firms use it at about the regional average ¹.
• Plan for collectionCollecting after non-payment may need travel to Mexico and a lawyer ².

Steps without a citation are general practice. Have contract terms checked by a lawyer in each country.

05Where does the seller need cash, and how is it financed?

On open account, the seller funds the buyer's terms plus any delay. For example, a 60-day term paid 30 to 45 days late ties up cash for 90 to 105 days ². A speaker at a 2026 industry event put invoice clearance in the auto supply chain at 60 to 90 days ³. These are examples, not measured averages.

The unpaid invoice is the seller's main asset during that gap, and most finance options use it. Mexico's development banks, Nafin and Bancomext, lend mainly through commercial banks ². Under a September 2026 agreement with the Nuevo León auto cluster, CLAUT, Nafin offers small auto suppliers factoring discounts of 100 basis points in pesos and 30 basis points in dollars ¹¹. Our guides to factoring in Mexico and deductions and chargebacks go further.

Where the cash goes

A 60-day term, paid late

1. Day 0
   Shipment and invoiceThe seller has already paid for materials, labor and freight. The CFDI starts the clock.
2. Day 1 to 60
   Terms runTwo- to three-month terms are more common in Mexico than in the region ¹.
3. Day 60
   Due datePayment is due in this example.
4. Day 90 to 105
   Late paymentMany importers in Mexico pay 30 to 45 days late on existing contracts ².
5. After
   Cash returnsDeductions or disputes can cut or delay the payment.

Example of a 60-day term paid late. Actual days depend on each contract and buyer.

After invoice, any buyerFactoring or invoice discounting

The seller sells or borrows against its unpaid invoices.

After invoice, large US buyerPayables finance

The buyer approves the invoice and a finance provider pays early. See supplier finance programs.

Buyer may not payTrade credit insurance

Covers most of an unpaid invoice if a covered buyer fails to pay.

06What should traders watch next?

Mexico has debated a law to make large companies pay small suppliers faster. A reform of the Commercial Code to require payment to SMEs within 45 days cleared a Chamber of Deputies committee on October 12, 2022 ⁹. A further initiative, filed on February 7, 2024, proposes payment within 30 days of the tax receipt, with late interest at least at the legal rate ¹⁰. Neither is confirmed as law, so check the status before relying on it.

Trade policy also affects terms, because tariffs raise the cash a trader needs. USMCA stays in force, with annual joint reviews, after the US declined to renew it in its current form on July 1, 2026 ⁸. The live list of measures is on our corridor watch page.

• PendingStatus of the February 2024 initiative for payment to SMEs within 30 days of the tax receipt ¹⁰.
• Sep 2026Nafin and CLAUT agree factoring discounts for auto-sector SMEs in Nuevo León ¹¹.
• Jul 1, 2026The US declines to renew USMCA in its current form. Annual joint reviews follow ⁸.
• Feb 17, 2026The US Commercial Service updates its Mexico trade financing guide, including the warning on late payment ².
• Oct 12, 2022A Chamber of Deputies committee approves a reform for payment to SMEs within 45 days ⁹.

Questions traders ask

Do Mexican buyers pay on open account?

Many do. Atradius finds that about 30% of B2B sales in Mexico are made on credit terms, and that two- to three-month terms are more common in Mexico than elsewhere in the region. No published figure gives the share of Mexico-US trade paid on open account.

How late do buyers in Mexico pay?

About seven in ten Mexican companies report late payment from B2B customers, and about one fifth of B2B invoices are overdue. The US Commercial Service reports that many importers in Mexico pay 30 to 45 days late on existing contracts.

Can a seller charge interest on late payment in Mexico?

Mexico's Commercial Code, article 362, sets interest from the day after the due date at the agreed rate, or 6% a year if no rate was agreed. The article refers to mercantile loans, so a lawyer should confirm how it applies to an unpaid invoice. A late-payment rate written into the contract is the safer course.

Should a US exporter ask a Mexican buyer for a letter of credit?

It depends on the relationship. A letter of credit gives the seller payment assurance from a bank. The US Commercial Service warns that requiring a confirmed letter of credit or cash in advance can cost sales in Mexico, and suggests EXIM buyer financing or export insurance instead.

How can a seller get paid sooner on open account?

The seller can sell or borrow against its unpaid invoices through factoring or invoice discounting, join a large buyer's payables finance program, or offer an early payment discount. Trade credit insurance covers most of an unpaid invoice if a covered buyer fails to pay.

Read next

• Corridor guidePaying in dollars, earning in pesos
• Corridor guideElectronic invoices (CFDI) and why lenders check them
• Corridor guideFactoring in Mexico: how exporters sell invoices for cash
• Corridor guideDeductions, chargebacks and disputes that delay payment
• Corridor guideUS export credit for buyers in Mexico
• Product briefAuto parts: the trade that crosses the Mexico-US border in both directions
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Selling on credit terms between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

Start the Conversation

Sources and notes

1. Atradius, B2B payment practices trends in Mexico, 2026. Fieldwork dates not stated. https://atradius.us/knowledge-and-research/reports/b2b-payment-practices-trends-in-mexico-2026
2. US Commercial Service, Mexico Country Commercial Guide: Trade Financing, updated February 17, 2026. https://www.trade.gov/country-commercial-guides/mexico-trade-financing
3. Mexico Business News, The new financial architecture for advanced manufacturing, June 2, 2026. Event speaker remarks. https://mexicobusiness.news/automotive/news/new-financial-architecture-advanced-manufacturing
4. Código de Comercio, article 362, text on mley.mx, checked September 15, 2026. Check against the official text on diputados.gob.mx. https://mley.mx/CCom/articulo/362/
5. ICC Academy, ICC Trade Register 2025, December 17, 2025. https://academy.iccwbo.org/international-trade/article/icc-trade-register-2025/
6. BCG with SWIFT and ICC, Digital ecosystems in trade finance, September 2019. https://swift.com/swift-resource/229731/download
7. ICC Academy, Key trade finance products: definitions and use cases. https://academy.iccwbo.org/trade-finance/article/key-trade-finance-products-definitions-and-use-cases
8. White & Case, USMCA 2026 joint review: United States declines to extend agreement, July 2, 2026. https://www.whitecase.com/insight-alert/usmca-2026-joint-review-united-states-declines-extend-agreement-triggering-annual
9. Emprendedor, Pymes recibirán pagos en máximo 45 días, October 13, 2022. https://emprendedor.com/pymes-recibiran-pagos-en-maximo-45-dias-diputados-aprueban-dictamen-deudas-proveedores/
10. Gaceta Parlamentaria, Chamber of Deputies, initiative of February 7, 2024, published February 8, 2024. https://gaceta.diputados.gob.mx/Gaceta/65/2024/feb/20240208-III-6.html
11. Cluster Industrial, CLAUT and Nafin support finance for auto SMEs in Nuevo León, September 2026. https://clusterindustrial.com.mx/claut-y-nafin-impulsan-financiamiento-para-fortalecer-a-las-pymes-automotrices-de-nuevo-leon/

All facts on this page are as of October 23, 2026, the date of publication, and may have changed since. Rules and tariffs are as of October 23, 2026 and change often: check the corridor watch before you act.

About this guide. Prepared for Ossiano Capital. People planned, researched, wrote and checked this guide, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.