What is open-account trading?
A) The vendor gives the buyer credit.
B) The buyer agrees to a long-term stream of purchases.
C) The vendor agrees to open its bank accounts to the buyer, as a sign of good faith.

Question

Quizplus · Accepted Answer

Open-account trading is a form of trade finance where the seller extends credit to the buyer. This means the seller ships the goods or provides the service first and allows the buyer to pay later, typically within 30, 60, 90 days, or more, depending on the agreement.

What Is Open-Account Trading