Open Account

An open account is a type of payment arrangement between a buyer and a seller where the buyer is allowed to purchase goods or services on credit without paying upfront. In the shipping context, an open account may be used for regular customers or for high-volume orders. The terms of an open account may vary depending on the relationship between the buyer and the seller, but typically include a due date for payment and an interest rate for any late payments. Open accounts can be convenient for both buyers and sellers but require careful management to avoid cash flow problems or payment disputes.