When services are provided on open account terms, when is payment expected?

When services are provided on open account terms, payment is typically expected after the services have been rendered. This arrangement allows the customer to receive the service first and then make payment at a later date, which can help facilitate trust and long-term business relationships.

Open account terms are common in industries where establishing a relationship with the customer is important and where ongoing service provision is expected. This method also allows customers to assess the quality of services or products before committing to payment, ultimately encouraging them to make purchases they might not have if pre-payment was required.

Other options suggest payment at different times, such as before or during service provision, which would not align with the open account concept, or at the customer’s discretion, which lacks the structured nature of typical payment terms associated with open accounts.