charge account definition

charge account

Trade credit facility under which goods are delivered or services are provided to creditworthy customers, who agree to pay for them a certain period (commonly 30 days) after the date of invoice. Each customer normally has a 'credit limit' beyond which goods or services are provided only on cash basis. Tardy customers may have to pay a certain rate of interest on the outstanding amount as a penalty. Also called credit account. See also open account.

charge account is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

charge account appears in the definitions of the following terms: credit account and account

This content can be found on the following page:

http://www.businessdictionary.com/definition/charge-account.html