open account

open account definition - business

open account

An arrangement in which a seller allows a customer to buy on credit without a formal borrowing agreement. With no formal guarantee of payment, open accounts can be risky for a seller.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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