Is an open account the most risky for an importer?

1 Answer | Add Yours

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

No, an open account is not the most risky for the importer.  In fact, it is the most risky for the exporter.

In an open account, the importer gets the goods from the exporter long before they actually have to pay for those goods.  They may have as much as 60 days in which to pay.  This is not a particularly risky form of financing.  It is not like the forms of financing in which the importer has to pay upon (or even before) the delivery of the goods.  Therefore, we cannot say that this is the riskiest form of export financing from the point of view of the importer.


We’ve answered 317,446 questions. We can answer yours, too.

Ask a question