2/10 Net 30

What It Stands For

2% discount if paid within 10 days; otherwise full payment due in 30 days

TopicAccounts Payable / Receivable
Why It MattersCredit terms like 2/10, net 30 are standard trade discount terms. The annualized cost of not taking the 2% early payment discount is approximately 36.7%, making it almost always advantageous to pay early.

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