Open Account

A method of settling payments for trade transactions. The supplier ships the required goods to the buyer who, after receiving and checking the related shipping documents, credits the suppliers account in his books with the invoice amount. The account is then settled periodically, say monthly, by the buyer sending a bank draft, or arranging through his bank a telegraphic remittance in favor of his overseas party.

	Applicable Products	Description	Key Risks (Non-Exhaustive)
Client Purchasing on Open Account	Advance Payment Trust Receipt (TR)	Pre-shipment import loan against PI. To be converted into open account TR within 30 days. Payment made directly to supplier	Very high-risk product. Dependency on supplier to ship goods, on Doha Bank client to convert to open account TR and further to pay at maturity. Even though goods are pledged to Doha Bank.
	Open Account TR	Post shipment import loan against copy of commercial invoice & transport document. Payment made directly to supplier	Very high-risk product. Dependency on Doha Bank client to pay at maturity, even though goods are pledged to Doha Bank
	Reverse Factoring	Similar to above. Financing of services also possible	Similar to above. However, no goods to pledge in case services are being financed.
Client Selling on Open Account	Invoice Discounting DID/EID	No assignment of receivables from debtors. Offers only financing and no other services	Complete dependency on Doha Bank client to pay at maturity in case payment not received from debtor
	Post Dated Cheque Discounting – DCD	Only financing offered against PDC’s. Dual recourse	Dependency on Doha Bank client to pay at maturity in case cheque is not honored. Risk of accommodation financing – EDD required to rule out related party dealings
	Domestic / Export Factoring with Recourse to Client DWR / EWR	For domestic and overseas buyers with assignment of receivables. Offer finance, ledger management & collection services. Credit protection is optional	Dual recourse in case of non-payment at maturity on Doha Bank client as this is with recourse facility & on debtor by means of assignment. Credit protection reduces risk further.
	Domestic / Export Factoring without Recourse to Client DNR / ENR	Same as above with either debtor risk covered through credit insurance or bank assuming risk internally	Recourse on debtor only. Limited recourse on Doha Bank client

Indicative Risk : NIL / MODERATE / HIGH / VERY HIGH

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Doha Bank’s retail, commercial and corporate products and services are granted at our sole discretion and are subject to the Bank’s terms, conditions and acceptance.