Getting paid on open account: 5 things every Indian exporter should know

Selling to overseas buyers on open account means you ship first and wait to be paid, so five things decide how smoothly it goes: the legal clock on your proceeds, the credit limit on each buyer, the quality of your documents, what insurance and non-recourse really cover, and how you finance the wait. This is the first issue of the Mintifi Global export finance briefing. It is general information for exporters, not advice on your particular transaction.

Key facts

• RBI's export regulations require realisation of export proceeds within nine months from shipment (goods) or invoice (services); twelve months for rupee-invoiced or rupee-settled exports.
• A buyer credit limit caps how much of your sales to one buyer can be funded or insured.
• A commercial dispute is not a credit event and is generally outside non-recourse treatment and credit insurance.
• Any advance is set after credit review and under the facility terms; no percentage or rate is published here.

1. The clock on your proceeds is set by the RBI, not by your buyer

Under the RBI's Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026, the full export value must be realised and repatriated within nine months from the date of shipment for goods, or the date of invoice for services. Where the export is invoiced or settled in Indian Rupees, the period is twelve months. An RBI amendment dated 22 September 2026 set these periods. If a buyer is late, your Authorised Dealer bank can extend the period on request if it is satisfied with the reasons, so raise delays early. More: export realisation timelines under FEMA.

2. The buyer's credit limit is the number that matters

Whether you use a finance provider or a credit insurer, each overseas buyer is given a limit, and sales above it sit outside the facility or policy. Limits can be reviewed, reduced or withdrawn, so ask how and when. More: buyer credit limits explained.

3. Documents decide how quickly you are funded and how well you are protected

For goods, India's Foreign Trade Policy 2023 lists the mandatory export documents: a transport document, a commercial invoice cum packing list and a shipping bill. Add your IEC, the contract or purchase order and, where you can get it, proof of delivery or buyer acceptance. Missing paperwork is the commonest cause of delay. More: documents needed for export factoring.

4. Insurance and non-recourse cover credit risk, not disputes

Credit insurance pays a percentage of an insured loss when a covered event happens; ECGC's Shipments (Comprehensive Risks) policy, for example, states 90% cover for exporters whose anticipated annual export turnover is above Rs 5 crore and whose projected premium is under Rs 20 lakh, under the policy schedule. Non-recourse factoring, where it is available on an eligible buyer and invoice, moves the credit loss to the provider. Neither pays when a buyer withholds payment over short shipment, quality or late delivery. More: export credit insurance vs factoring.

5. Financing the wait is a choice, not a given

On open account the exporter funds the buyer's credit period. Options include your bank's post-shipment facilities, a letter of credit for buyers you do not yet trust, credit insurance to limit loss, and export factoring to turn an approved invoice into an advance before the due date. They are often used together, buyer by buyer. More: how to get paid faster on open-account exports and export factoring in India.

This month on the site

• How to get paid faster on open-account exports
• Export realisation timelines under FEMA
• Export credit insurance vs export factoring
• Documents needed for export factoring
• Buyer credit limits explained
• Notice of Assignment explained
• The full learning hub

Frequently asked questions

What is open-account trade?

A trade term where the exporter ships goods or delivers services and the buyer pays after a credit period, without a letter of credit.

How long do I have to realise export proceeds?

Nine months from shipment (goods) or invoice (services), twelve months for rupee-invoiced or rupee-settled exports, under the RBI's 2026 regulations as amended on 22 September 2026.

Is this issue advice?

No. It is general information. Speak to your Authorised Dealer bank, auditor and legal adviser about your own transactions.

Sources

• RBI, Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Regulation 5: rbi.org.in.
• RBI, notification FEMA 23(R)/(1)/2026-RB, 22 September 2026: rbi.org.in.
• DGFT, Foreign Trade Policy 2023, Chapter 2, para 2.06: dgft.gov.in.
• ECGC Ltd, Shipments (Comprehensive Risks) Policy product sheet: ecgc.in.