Open Account: An
open account transaction is a sale where the goods are shipped and
delivered before payment is due, which is usually in 10 to 90 days.
Obviously, this option is the most advantageous option to the importer
in terms of cash flow and cost, but it is consequently the highest risk
option for an exporter. Because of intense competition in export
markets, foreign buyers often press exporters for open account terms
since the extension of credit by the seller to the buyer is more common
abroad.
- Exporter and Importer sign the purchase contract
- Exporter ships the goods to the Importer
- Exporter forwards shipping documents to the Importer
- Importer transfers funds to pay Exporter
Recently, I heard that charcoal exportation has been banned in Nigeria. How true is this? Chinedu from Lagos.
ReplyDeleteYes, but the federal executive council has not ratified the ban.
ReplyDeleteYes, but the federal executive council has not ratified the ban.
ReplyDelete