In Financial Supply Chain, monetary transactions occur between trading partners to facilitate the purchase, production and sale of goods and services. Open Account Trades in the Supply Chain refers to trade transactions between a buyer and a seller where transactions are not supported by any banking or documentary trade instruments.
Globally, Open account trades have grown significantly. Today, they constitute more than 80% of global trade transactions. Access to finance at the right time is a critical barrier to growth of open account trades. MSMEs (Micro, Small and Medium Enterprises) who are key contributors to economic development, innovation and employment in most countries face frequent credit constraints.