Open account ships the goods before the invoice is due, so the seller finances the buyer for 30 to 90 days
In an open account sale the goods ship before payment is due, typically in 30, 60 or 90 days. The seller carries the buyer's payment risk and can manage it with export credit insurance, a standby letter of credit or receivables finance.
Credit insurers covered USD 3,345 billion of short-term trade in 2025 and paid USD 11,107 million in claims
Trade credit insurance pays an exporter most of an unpaid invoice when a foreign buyer defaults or a political event stops payment. Short-term cover pays 90 to 95 percent, and the policy proceeds can be assigned to a lender to support financing.