2/10, n/30
2/10, n/30 is a common business-to-business credit term indicating that a 2% discount is applied to an invoice if paid within 10 days. If the discount is not taken, the full "net" invoice amount is due within 30 days.
This structure encourages fast payment while offering flexible payment terms.
Breakdown of Terms
2 ➧ The discount percentage allowed | 2%.
10 ➧ The number of days the buyer has to pay to receive that discount.
n/30 ➧ (Net 30) The full invoice amount is due within 30 days if the discount is not taken.
Example
On a 1,000 invoice, paying within 10 days saves the buyer $20 (2% × 1,000), resulting in a payment of 980. If paid on day 11 or later, the full 1,000 is required.
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This structure encourages fast payment while offering flexible payment terms.
Breakdown of Terms
2 ➧ The discount percentage allowed | 2%.
10 ➧ The number of days the buyer has to pay to receive that discount.
n/30 ➧ (Net 30) The full invoice amount is due within 30 days if the discount is not taken.
Example
On a 1,000 invoice, paying within 10 days saves the buyer $20 (2% × 1,000), resulting in a payment of 980. If paid on day 11 or later, the full 1,000 is required.
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