So, which term length is right for your business? One compelling reason to choose a shorter term length—like net 10 over net 30—is to be paid faster. The goal of 2/10 is to encourage early. , the term “net 30” is one of the most common payment terms. Net 10, net 15, net 30 and net 60 (often hyphenated “net-” and/or followed by “days”, e. Net 30 payment terms. What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. S. 1/10 Net 30 means that the buyer will receive a 1% discount if payment is made within 10 days. Net terms. However, if paid within 10 days, customers enjoy a 2% discount on the goods purchased. NET system includes tools, libraries, and languages that support modern, scalable, and high-performance software development. 2/10 Net 30. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. "2/10 net 30" is a commonly used payment term in business transactions. For example, discount terms may appear as 2/10 Net 30, which means that the final amount is reduced by 2% if the client pays the invoice in full within the first 10 days of the invoice. Take 1% discount if pay in 10 days, otherwise pay in 60 days. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days. It means customer will receive 4% cash. Select Terms. The number after net represents the number of days to pay an invoice in full. For example, if an invoice is dated January 1 and says “net 30,” the payment is due on or before January 30. If their purchase is tiny, payment is due immediately; if it’s much larger, they might be eligible for net 30 or net 60 terms. Editing documents is now an integral part of many working processes in various professional areas, which explains why accessibility and efficiency are crucial for editing instruments. These terms provide a frame of reference for businesses to understand their payment responsibilities and deadlines. take a 2% discount if payed within 10 days, or pay the full amount in 30 days. Otherwise, the total amount is due within 30 days. 30 mean? Information and translations of 1. It is a common payment term used in business-to-business transactions to extend credit to customers or clients. It’s up to you to give the best term to customers. Discover what it means to use net-30 payment terms in business. With this payment term, sellers can receive their funds in an orderly manner, ensuring that invoices are paid on time and at the same time, allowing buyers more. $900: Net 30 days: The net amount is due within 30 days of the invoice date. What is a 2/10 net 30 early payment discount and when does items make sense in your store to use on? Read unsere full guide with examples also calculations. . Net 30: What It Means, How Businesses Use It Adjusting the amount of time you give customers to pay an invoice isn't the only way to improve on-time payments. This kind of discount terms will place on the issued invoice. The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. 2/10 net 30 calculations are quite simple once understood fully. Say you sent a $600 invoice with net 2/10 30 terms to your customer on April 2. Other net payment terms in the normal course of business include Net 10, Net 15, and Net 60. As a verb, gross means “to have, make, or earn as a total before any deductions. Businesses typically offer one of four net payment terms: Net 15 payment terms: This means an invoice is due in 15 days Net 30 payment terms: This means an invoice is due in 30 days Net 60 payment terms: This means an invoice is due in 60 days Net 90 payment terms: This means an invoice is due in 90 days. Quadrant 1: Home 1-30, Neutral 1-50, Away 1-75; Quadrant 2: Home 31-75, Neutral 51-100, Away. Question: Question 4 ( 10 marks) a) What does the term ‘2/10, net 30’ mean? (1. O. Payment terms such as net 30 are critical to include on invoices, as they give a clear indication of when you want to be paid. $900: 2/10, n/30: If paid within 10 days of the invoice date, the buyer may deduct 2% from the net amount. Question: Question 4 (10 marks) a) What does the term ‘2/10, net 30’ mean? (1. Once the customer starts paying on time, the business may extend longer payment terms like net 30 or net 60. g. If not, the full amount is due in 30 days. Net 10: Pay in 10 days: None: Net 30: Pay in 30 days: None: Net EOM 10: Pay within 10 days of month-end: None: 1/10 Net 30: Take 1% discount if pay in 10 days,. *. After 10 days, the full amount of 800 is due within 30 days of the invoice date. Net 30 EOMInvoice 800 With Terms 1/10 Net 30. Save them the headache by providing a brief and concise explanation next to. It is important to understand this payment term, so that. 25%. The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. Suppliers or manufacturers often insert motivational discount terms to encourage the clients to pay early. Seller alternatives to using net 90 credit terms may be payable in advance (PIA) or COD (cash or collect on delivery), short-term net 7, net 10, net 15, net 30, 1/10 net 30, 2/10 net 30, net 45, or net 60. 1/10 Net 30 means that the purchaser will receive at least a 1% discount if you get paid within 10 days of purchase. 2/10 Net 30 Amount = Total Receivables – Total Discount. To be clear, a is the acceleration of the object, Σ F is the net force on the object, and m is the mass of the object. Thus, terms of “1/10” mean that a discount of 1% can be taken if payment is made within 10 days. . It means that the buyer has the option to pay for the goods or services within 10 days and receive a 1% discount, or pay within 30 days without a discount. Notably, some terms even offer incentives for early payment, such as the 2/10 Net 30, rewarding faster payers with. However, this payment type offers a discount of 2% for clients who submit payment within 10 days. Net 30 is a payment term included in an invoice. Net 30 refers to a payment term where the payment for the goods or services is due in full 30 days after the transaction has completed. Select Customer & Vendor Profile Lists. If an Invoice is not paid on time, that is by the 10th, a 1. This discount is intended to encourage customers to pay more quickly. The term 2/10, n/30 is a typical credit term and means the following: "2" shows the discount percentage offered by the seller. What does terms mean on an invoice?. What do the credit terms of 2/10 net 30 mean? 2/10 net 30 is a trade credit offered by the seller. QUESTION 1 What does the invoice term 2/10, Net 30 mean? The buyer can take a 30% discount for paying in 2 days. The n stands for net and the first 10 is a. Net 30 means that the full payment is due within 30 days of the invoice issue date. Each of those rates applies to a range of taxable. How Does Net 30 Terms Work? Net 30 terms are a trade credit. Discount terms are provided as a two-part statement, where the first item is the percentage discount allowed, and the second item is the number of days within which payment can be made in order to receive the discount. You first need to calculate your net profit for a given period of time (usually a week or month). To do that: Go to Lists from the menu bar and select Customer & Vendor Profile Lists. Home; About;. Add up all full-time hours: Two full time (40 hours per week) employees:2,080 x 2. The buyer will have to pay 10% more if they pay by credit and will get a 2% discount if they pay by cash in 30 days. Say you sent a $600 invoice with net 2/10 30 terms to your customer on April 2. ” It means that there will be a 1% discount if the buyer pays the bill within 10 days, instead of taking advantage of the whole 30-day period. That’s a 36% return on cash for the discount. Meaning of 30. Net 7; Net 10; Net 30; Net 60; 2/10 Net 30 (2% discount if paid in 10 days, otherwise full amount due in 30 days). Net 30 terms can cause cash flow problems and hurt cash-poor small businesses. Otherwise, the amount is paid in full within 30 days. (3. This term helps businesses get their payments faster, especially those without a line of credit. Best Answer. Net 30 means that the balance is due in 30 days after the date of the invoice. Key Takeaways The EUR/USD pair represents the number of US dollars required to buy a single euro. Net 15 means that a customer has 15 calendar days to submit payment for the invoice. ” It is a reference to a payment period, which means the client has 30 days to pay the full amount of their invoice. What Does It Mean on an Invoice? Net 30 is a term used to communicate that the recipient has 30 days to pay an invoice. A common discount is 2/10 Net 30 which means customers can enjoy a 2% discount off the net amount to pay if it is paid within 10 days. A net 30 account is a line of credit that vendors extend to their customers. Answers (12) In payment term what does it mean on this term? 2%/10, net 60. The chancellor said that for someone on the average. With the "Net 30 EOM" term, EOM stands for "end of the month. Unlock savings with 1%/10 Net 30! Discover how this billing term can boost your finances. Net 10, net 15 and net 30 are not only common invoice payment terms, they also function as a form of credit. It means that if the bill is paid within 10 days, there is a 1% discount. The ‘30’ in Net 30 discusses the length of time allowed for payment. The invoice’s payment is due in ten days, according to N/10. 2/10 net 30 means that if the amount due is paid within 10 days, the customer will enjoy. Study with Quizlet and memorize flashcards containing terms like Sales discounts with terms 2/10, n/30 mean: a. a purchase in transit for 7 days before receipt has just 23 additional days until payment is due to the. On contracts and invoices, you’ll see these terms. Subtotal invoice amount $ 2,500. Otherwise, the full price will be due in 30 days—standard net 30 terms. 3/10 net 30 means a 3% discount if a customer pays within 10 days. Other common net terms include net 60 for 60 days and net 90 for 90 days. Related AccountingTools Courses Net 10 means payment is due 10 days after the invoice date. Net 30 and Net 90 are the most common payment terms. The number after net represents the number of days to pay an invoice in full. Due in 30 DaysHow Do You Use Net 30 Terms?Examples of Net 30 Payment Terms Pros and Cons of Net 30 TermsNet 30 AlternativesShould You Use Net 30 Payment Terms?Importance of Net 30 Payment TermsWhat is Net 30 on an. Learn how net-30 can improve cash flow, credit, and payment processing. Discounts can also be incorporated into prox terms. Net Sales will Increase. g. 1% discount is allowed if the bill is paid within 30 days. A business that offers a 2/10 net 30 discount is expressing. Take a look at this example to determine how. c. This type of payment term encourages buyers to pay promptly, while giving them the flexibility to pay. Benefits of a Net 30 Account Net 30 is a term included in the payment terms on an invoice. First, there is less competition. Add your perspective Help others by sharing more (125 characters min. This type of transaction is common in business, and it is. The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. A net 30 account is a line of credit that vendors extend to their customers. Learn more about Net 30 Payment Term in an invoice. Network neutrality is the principle that all Internet traffic should be treated equally. 11 min read. This is a two-part statement, where the first item is the percentage discount allowed, and the second item is the number of days within which payment can be made in order to receive the discount. For example, “2% 10th Prox Net 30” means a 2 percent discount can be taken if the bill is paid before…. 01:44. Technically, the seller is lending the buyer money. This discount is intended to encourage customers to pay more quickly. On an invoice, net 10 means that full payment is due in 10 days after the invoice date, at the very latest. Science & Tech; _Science; _Technology. This is the early payment discount portion of the term, “1/10 net 30”. Net 30 is a type of payment terms that indicates that a bill's full amount is due 30 days after the date of the invoice. Invoice. This discount serves as an incentive for prompt payment. The term 2/10 net 30 means the supplier or seller will give an additional 2% discount to the purchaser if the purchaser pays the due amount within 10 days from the date of purchase instead of taking a full credit period of 30 days. Manage your cash flow properly, regardless of what your customers are doing. The difference between the various Net D payment terms is simply how many days someone has to pay. Previous question Next question. Thus, this could also be written out as 1. Net terms can vary and include a discount for quick payments (for example 5% 10, net 30). Here’s the net 30 meaning: It’s when a seller extends a buyer 30 calendar days to pay the full amount for goods provided or services rendered. What does 10 net 30 mean? The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. So. To get paid sooner, combine the net 45 payment terms with a 1% or 2% discount offered for invoice payment within 10 days (1/10 net 45 or 2/10 net 45). 00 NNN ($6. Net 7, 10, 15, 30, 60, or 90: Payment expected within 7, 10, 15, 30, 60, or 90 days. You know you are using the right document editor when such a simple task as Cut formula invoice does not take more time than it should. This serves to encourage clients to pay more over a shorter period of time. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. Net 30 terms are often used when the supplier offers a discount for early payment (such as 2% 10 Net 30). After 10 days, the full amount of 800 is due within 30 days of the invoice date. For example, if a business sells $10,000 worth of products and issues an invoice with Net 30 payment terms, the buyer has 30. While it is so standard, many business. Business professionals consider net 30 payment terms a form of credit. If the customer doesn’t pay within 15 days, then the invoice is due in 30 days with no discount. Net 30 allows customers to pay early or anytime before the 30 days expire, but after that, the account becomes past due. What does the credit term 2/10 N 30 mean? 2/10 net 30 is a trade credit offered by the seller to the buyer for their purchase. The 2/10 Net 30 is a popular method of extending trade credits to buyers. A firm currently has annual sales of $15 million, average collection period of 30 days and terms of net 30. 2/10 Net 60 means that you will give credit to your clients up to a 2% discount if the order is made within 10. This can also be represented as Net 15, Net 60, etc. Otherwise, the total amount is due within 30 days of. Vendors may change the payment terms at any time. It simply means the customer has 30 days to pay the total amount of their invoice. 5 marks) i) Once FIN222 Ltd passes the discount. What does 1%/10 net 30 mean? It’s the first invoice payment term on this list that’s not even a little self-explanatory. 2/10 Net 30 (2/10, n/30) means that the payment is still due in 30 days, but the customer will receive a 2% discount if the invoice is paid within 10 days. Net 30 is an invoicing payment term used commonly in the business world, where the 30 refers to the amount of days that your client has to pay the outstanding invoice. Other net terms examples might include net 10 for 10 days, net 60 for 60 days, etc. Cash Discount: A cash discount is an incentive that a seller offers to a buyer in return for paying a bill owed before the scheduled due date. To be clear, a is the acceleration of the. When the payment terms are 2/10 net 30, this means that you would have to divide the 20 days with 360 days, which will give you 18 days. Net 30 refers to the amount owed in full, less any discounts and deductions. Net 30 indicates that the full payment is due, at the latest, by 30 days from the invoice date. M: Here E. material made of threads of rope, string, wire, or plastic with spaces between them, allowing…. 5 marks) 1) Once FIN222 Ltd passes the discount. In this case, the total net 30 invoice, after the discount, would be $980 and the retailer would save $20. 2. PIA: Payment in advance. Some allow as few as seven days or as many as 180 days. The Difference Between Net 15, Net 30, and Net 60. If you do not receive a refund within 30 days, the remaining balance will be due. i. Businesses will often provide clients with net 30 terms with a 2% discount if they pay within ten days. However, they may not be 100% familiar with the specifics. Answer: 1. Net 30 refers to the amount owed in full, less any discounts and deductions. Of course, this also applies to other. The customer suggested 2% 30 day terms. What does net mean in payment terms? “Net” means that the full amount is due for payment. While some companies may opt to pay these invoices well before the 30-day mark, many will not unless you offer incentives to do so. Simply put, net 30 on an invoice means payment is due thirty days after the date. dollars to buy 1 euro. You as the freelancer will provide a service, write an invoice, and give it to the customer. a = Σ F m. When does the net 60 term start? The due date of a net 60 invoice might be interpreted in a number of ways. Net 10 means payment is due 10 days after the invoice date. Additional 2% cash discount if paid with 10 days of the invoice date; net amount (Full Amount) is due in 30. What a a 2/10 web 30 early auszahlen discount and when does it make sense by your business to use one? Read our full guide with examples and calculations. Net 30 terms is an example of credit terms used on an invoice. " This means the payment is due 30 days from the end of the month when the invoice was sent. When exactly does Net 30 start? The due date in net 30 terms can vary depending on the agreement between the client and your business. If you offer Net 30 terms but can’t afford it, you. This means the national insurance rate paid by 27 million people will drop from 12% to 10% from January. In this case, net 30 is the amount owing in full, after factoring in. NET platform. 1%/10 Net 30 is a type of payment term that is often used in business transactions. EOM stands for the end of the month. Just below the nutrition facts box, the "impact carb facts" box provided by the manufacturer explains, "Fiber. *. This discount is intended to encourage customers to pay more quickly. 5, 9. In addition, it gives median, mode, and range. Here are examples of net 30 payment terms combined with discounted rates for early payment. Net 30 Defined, Also Known As Net D. $900: Net 60 days: The net amount is due within 60 days of the invoice date. e. Doing so will help build business. Two payment term abbreviations used with reference to due dates are prox and EOM. This option offers even more payment flexibility for your clients. It means that if the bill is paid within 10 days, there is a 1% discount. - The notation "net30" indicates that full payment is expected within 30 days. , Gross sales total $300,000, one-half of which. It’s a term you’ll typically see written on an invoice after you’ve received the product or service, but it can also pop up in contracts. In this case, the number “2” represents the percentage of discount offered, while “10” signifies the number of days within which the payment must be made to. 2/10 means that if Box Lighthouse pays the $100,000 within 10 days, Jamie's Light Manufacturing will give Box Lighthouse a 2% discount. Thus, terms of “1/10” mean that a discount of 1% can be taken if payment is made within 10 days. Learn more about Net 30 Payment Term in an invoice. But, depending on the industry you operate. A typical net 30 credit term means the balance is due within 30 days from the invoice date. The aforementioned net 7 terms are the shortest variety of “net terms” that you. Net 10, net 15, net 30 and net 60 (often hyphenated “net-” and/or followed by “days”, e. 2. g. Net 30 payment terms on an invoice means the customer has 30 days to pay the full balance of the invoice. Calculated amount of the discount @2% $ 50. The vendor may offer incentives to pay early to accelerate the inflow of cash. In this case, if the amount due is paid within 10 days, the customer receives a 3% discount. What does $800 with terms 1 10 net 30 mean? An invoice for 800 with terms 1/10 net 30 is a business transaction that requires payment of 800 with a 1/10 discount if the payment is made within 10 days of the invoice date. 3/10 net 30 – A 3% discount is on offer for buyers who pay within 10 days of the invoice date, otherwise, the full amount is. 2, 10, 10. 15, payment would be due 30 days from Nov. In some cases, businesses may offer a discount for early payment, which provides an incentive for the buyer to pay sooner rather. Net 30 could mean 30 days after the sale, 30 days after delivery, or 30 days after the invoice. An active developer community maintains and supports the . A form of trade credit, net 30 accounts allow customers to pay up to 30 days after the invoice date. In these constructions, the first part of the term— net —refers to a duration of time. In other cases, it means you have 30 days from your invoice date, which would mean 30 days from the end of your fuel card’s billing cycle. The average customer will have a hard time understanding what 2. . The net 30 at the end of this payment term shows that the customer still has 30 days to pay if they need it. Thus, terms of “net 20” mean that full payment is due in 20 days. A typical discount payment term offered by vendors is 2/10 Net 30. Wiki User. Otherwise, they forfeit the discount. This is illustrated by such terms as "1/10, net 30" of "2/10, net 60. The seller will usually reduce the amount owed by the. If an invoice is created on September first and is marked “Net 30”, it means payment is due on September 30. 3/10 net 30 refers to a trade credit offered to a customer for a certain sale. Invoice 800 with Terms 1/10 Net 30 is a commercial term representing a business transaction in which an invoice of $800 must be paid for within 10 days, or the entire amount must be paid within 30 days. What is a 2/10 low 30 early cash discount and when executes it make sensitivity for your business to use one? Read our full direct with examples and counts. 3. N/10 EOM is a type of payment term you will see on an invoice. As a verb, gross means “to have, make, or earn as a total before any deductions. What is a 2/10 net 30 early cash discount and when does it make sense for your business to use one? Read unser full guide with examples additionally calculations. If you mean on a contract that you need to pay (invoice), it probably has something like 2/10 net 30. Net worth is the amount by which assets exceed liabilities. This is a two-part statement, where the first item is the percentage discount allowed, and the second item is the number of days within which payment can be made in order to receive the discount. The invoice indicates the invoice date and, preferably, the payment due date. Newton's second law tells us exactly how much an object will accelerate for a given net force. The payment terms refer to the conditions under which a buyer has to pay-off the full value of the invoice. net definition: 1. On net 30 terms, the customer must pay within 30 days of when the invoice for a product or service was provided. 4. Merchants often offer credit for early payment to encourage customers to pay their invoices faster. As mentioned in the article, businesses can offer discounts so that their clients pay early. To get paid sooner, combine the net 45 payment terms with a 1% or 2% discount offered for invoice payment within 10 days (1/10 net 45 or 2/10 net 45). In this case, the customer would save money by paying. EOM stands for the end of the month. 2/10 net 30 means a discount for payment within 10 days. 1. The "2/10" part of the term indicates that a 2% discount is available if the buyer pays the invoice within 10 days of the invoice date. Net profit margin is the net profit your business makes expressed as a percentage. Net 10, net 15, net 30 and net 60 (often hyphenated "net-" and/or followed by "days", e. For example, discount terms may appear as 2/10 Net 30, which means that the final amount is reduced by 2% if the client pays the invoice in full within the first 10 days of the invoice date. 5/20 net 30 means. Most small business owners will have heard of Net 30 payment terms. This is expressed as a notation like “1% 10, net 30” or “1/10 net 30. S. Just like 1/10 Net 30, with terms of 2/10, n/30, the “2” represents 2%, the “10”. These mean payment is due in 10, 15 or 60 days. For example, a net 30 invoice dated “April 1” would be due April 30. What is the new receivables and new. Net 30 is short for what might read, “Payment is due within 30 days of the date specified. 04% for the 20 days between day 10 and day 30. . “Net” means that the full amount is due for payment. Most small business owners will have heard of Net 30 payment terms. Net-net is a value investing technique developed by Benjamin Graham in which a company is valued based solely on its net current assets. What does 1-30 mean? Information and translations of 1-30 in the most comprehensive dictionary definitions resource on the web. “Net 30” refers to a payment term that means a customer has a 30-day length of time (or payment period) from when they received the invoice to pay their full invoice balance. )If 30% of your customers say they’d be happy to recommend you, but 5% would absolutely not, your NPS is 30-5=25. Which simply means if the buyer pays the invoice within 10 days, they will receive a 2% discount. One of the most frequently used payment terms, net 30 is a credit term extended to your customers requesting tha. Company XYZ sells goods amount to $ 50,000 to one of the customers with credit term 4/10, net 30 days. NOTHING BUT NET: Get to know the NET rankings — and what they mean for the NCAA tournament. what does 2/10, net 30 mean. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. Learn more. An example of a sales discount is for the buyer to take a 1% discount in exchange for paying within 10 days of the invoice date, rather than the normal 30 days (also noted on an invoice as "1% 10/ Net 30" terms). Companies with high profits often offer these. With these payment terms, the buyer will only receive a 1% discount instead of a 2% discount for paying early (within 10 days) on net 30 terms. Importance of Net 45 Net 45 is an important credit term because it allows customers to pay 15 days later than the more common payment terms of net 30. , “net 10 days”) are types of trade credit that specify that the buyer must pay the net amount (the total outstanding on the invoice) in full within 10, 15, 30 or 60 days after the goods are. For example, under 2/10 net 30 terms, you would divide 20 days into 360, to arrive at 18. Understanding 2/10 Net 30. The buyer receives a 2% discount on the net invoice amount when paid within 10 days. Importance of Net 45 Net 45 is an important credit term because it allows customers to pay 15 days later than the more common payment terms of net 30. 1000Similarly, if a creditor extends an offer of a 1% discount if the debtor pays within 10 days, the invoice will state 1/10 net 30. Net 30 end of the month means that full payment is due 30. What is the effective annual cost of credit terms of 1/10 net 30, if the firm stretches the account payable to 45 days? (1. This means that if the buyer is able to fulfill the invoice amount of the. 3/10 net 30 means a 3% discount if a customer pays within 10 days. For employees, what does net pay mean? Net pay is take-home pay. g. This is sometimes referred to as 2/10 net-30 terms (though there are other types of similar credit terms as well). Below are a few important steps to take in order to start implementing net terms (including Net 30) in your. Net 30 is a term included in the payment terms on an invoice. The 1%/10 net 30 calculation addresses the credit terms and payment. This means the $1,000 is due within 30 days, but if the company pays the invoice within 10 days, only $980 needs to be paid. ’Net 30 typically means the client should pay for a product or service within 30 days of the invoice date. The most common net terms are Net 30 (30 days until full payment is due), Net 60 (60 days until full payment is due), and Net 90 (90 days until full payment is due). Set up a NeweggBusiness account before having your primary account holder apply for credit terms. 30 in the most comprehensive dictionary definitions resource on the web. NET is an open-source platform for building desktop, web, and mobile applications that can run natively on any operating system. The 2% 10 Net 30 term means that the payment will due in 30 days with a 2% discount if paid within 10 days. If the customer doesn’t take the early payment discount, the invoice is due for payment within 30 days. What does 30 mean? Information and translations of 30 in the most comprehensive dictionary definitions resource on the web. A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after… Q: Miyagi Data, Inc. To get paid sooner, combine the net 45 payment terms with a 1% or 2% discount offered for invoice payment within 10 days (1/10 net 45 or 2/10 net 45). It is the discount terms for the early payment or pay on time. 2/10 Net 30: The buyer receives a 2% discount if they pay.