Question

When negotiating terms, what does &#x27;2/10, net 30&#x27; mean regarding the cost of goods purchased?

Accepted Answer

The credit term &#x27;2/10, net 30&#x27; is an incentive offered by a seller to encourage buyers to pay their invoices quickly. The first part, &#x27;2/10,&#x27; means the buyer can take a 2% discount on the total invoice amount if they pay the bill within 10 days of the invoice date. The second part, &#x27;net 30,&#x27; means that if the buyer chooses not to take the discount, the full, original amount is due within 30 days. For example, if you receive an invoice for $100 under these terms, paying within 10 days allows you to pay only $98, but waiting any longer requires you to pay the full $100 by day 30.

When negotiating terms, what does '2/10, net 30' mean regarding the cost of goods purchased?

The credit term '2/10, net 30' is an incentive offered by a seller to encourage buyers to pay their invoices quickly. The first part, '2/10,' means the buyer can take a 2% dis....

Community Answers

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When negotiating terms, what does '2/10, net 30' mean regarding the cost of goods purchased?

The credit term '2/10, net 30' is an incentive offered by a seller to encourage buyers to pay their invoices quickly. The first part, '2/10,' means the buyer can take a 2% dis....

Community Answers