When paying via ________, the goods are shipped by the exporter and received by the importer before payment, and the exporter then bills the importer for the goods, stipulating the amount, form, and time at which payment is expected.

Question

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Open account transactions mean that the goods are shipped and delivered before payment is due, typically within 30, 60, or 90 days. This method is advantageous for the importer in terms of cash flow and cost, but it presents a higher risk to the exporter.

When Paying Via ________, the Goods Are Shipped by the Exporter