Highlights

In open account transaction the importer can obtain the shipping documents directly from the exporter and clear the imported goods from customs without any bank endorsements.

In an Open Account Transaction, seller is exposed to greater risk and relies on buyer to receive payment.

Once the goods are cleared, the importer sends the payment to the exporter within 180 days. 

Open Account Transactions are more popular in the world since it’s easier to handle with less documentation and less Bank charges. 

Advance Payment is a payment done by an importer to the exporter prior to shipment. These types of payment can be done up to US $50,000/- or equivalent in other currencies. Advance Payments are effected prior to taking delivery of goods and sometimes even before shipment. This option is the most advantageous to the seller as he receives funds in advance.

Benefits

• Easy settlement method
• Less documentation
• Prompt & direct payment to supplier
• Larger amounts can be sent to the supplier without delay

Eligibility

• Importer and the exporter should come to an agreement before entering the open account/ advance payment transaction.
• Proper instructions should be given to the Bank to affect the Open Account Payments / Advance Payments.
• Customers should maintain an account with the Bank.

Terms & Conditions apply

Details and terms & conditions mentioned in this page may change from time to time. Please contact the nearest branch for prevailing details and terms & conditions