The number after net represents the number of days to pay an invoice in full. 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. What is 2 10, N 30?Definition: 2 10, Net 30 is a cash discount term where customers have 30 days to pay for purchase but can receive a two percent discount i. On an invoice, net 10 means that full payment is due in 10 days after the invoice date, at the very latest. 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. QUESTION 1 What does the invoice term 2/10, Net 30 mean? The buyer can take a 30% discount for paying in 2 days. So, when you see an invoice that states ‘3/10 net 30’, it means that customers can receive a 3% discount if they pay within 10 days. Net 30 calculations can vary based on the fuel card you’ve selected. What does 2% 10 mean in the payment terms 2% 10 Net 30? 2/10 net 30 is a trade credit offered by the seller to the buyer for their purchase. This means the national insurance rate paid by 27 million people will drop from 12% to 10% from January. Net 60 payment terms. Net 30 is one of several common payment terms used in business, with other examples including net 60 and due on receipt. 2/10 Net 30. It consists of three vital components: 1/10 net 30 is an example of an early payment discount for an invoice on net 30 payment terms. 2/10 net 30 Calculation. Question: Question 4 ( 10 marks) a) What does the term ‘2/10, net 30’ mean? (1. Net 30 payment terms. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. Two-tenths of a percent discount for payment within 30 days. 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). The 2/10 Net 30 is a popular method of extending trade credits to buyers. A vendor can change the payment terms according to when they want to be paid. As a result, the “2” denotes the percent discount (2%) and the “10” denotes the due dates (10 days out). So, what does Net 30 mean in payment terms? Net 30 payment terms state that a customer has 30 days to make a payment after they receive an invoice. This is essential when vendors have accounts receivable turnover cycles which exist longer than preferred. 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. In this case, net 30 is the amount owing in full, after factoring in. 1 Percent of 10 NET 30 usage. This type of agreement is common in business-to-business transactions. From an accounting manual for a university - with many definitions for various payment terms I found this: 2% 10 and 25th =. Save them the headache by providing a brief and concise explanation next to. View the full answerOne of the common ones for business to business is "net 10" or "net 30". If an invoice is created on September first and is marked “Net 30”, it means payment is due on September 30. For example, if the pair is trading at 1. If a buyer is able to pay an invoice in full within the first ten days, they will receive a 2 percent discount on the net amount. Otherwise, the amount is paid in full within 30 days. After 10 days, the full amount of 800 is due within 30 days of the invoice date. A lot of businesses choose to offer a discount to customers if they manage to pay before the 30 days is complete. Such an agreement or offer is written on an invoice as “2/10 net 30. End of the month (EOM) is a word that means “end of the month. If paid within 10 days, then: $10,000 X 98% = $9,800 due with in 10 days. Net terms. Specifically, 800 Terms 1/10 Net 30 indicates that customers can receive a 10% discount on the invoice amount if they pay within 10 days, with the. For example, if the terms are Net 15, then the customer must pay within 15 days. Allowing clients to delay payment for 30 days is sometimes known as a trade credit. net dictionary. It is the discount terms for the early payment or pay on time. b. 2/10 Net 30 term explained. What does net 3/10 30 mean? A net 3/10 30 or 3/10 net 30 is an early payment discount of 3% if your customer pays within the first 10 days of receiving the. 25%. Subtract the discount percentage from 100% and divide the result into the discount percentage. The 60 days most often begin on the date the invoice was issued, though that may vary depending on the business’s specific terms. It means that a buyers payment is due 30 days from the day they receive the shipment. 5 marks) 1) Once FIN222 Ltd passes the discount. If paid within 30 days, then: $10,000 is due. Suppliers or manufacturers often insert motivational discount terms to encourage the clients to pay early. Business owners can expand their customer base by offering credit terms such as net 30. c. 2/10 net 60 and 1/10 net 60 mean the customer must pay the invoice within 10 days to receive a 2% or 1% discount, respectively, or pay the full invoice amount within 60 days. 2. A typical discount payment term offered by vendors is 2/10 Net 30. Learn more. Net Sales will Increase. . 1%/10 Net 30. A net 30 account is a line of credit that vendors extend to their customers. When credit terms of 1/10 N 30 are offered the discount period is? The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. These types of discounts can have many variations, but the calculations are the same: 1/15 Net 30: The buyer receives a 1% discount if they pay within 15 days. 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. Net Cost Method 12/ 1 Inventory . " This means the payment is due 30 days from the end of the month when the invoice was sent. 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. 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 the case of net 10, it is within 10 days—suitable when you expect an early payment. Take a look at this example to determine how. 2/EOM net 45: 2% early payment discount if paid by the end of the month or total. It simply means the customer has 30 days to pay the total amount of their invoice. An invoice can be worded as, ‘ Payment due 30 days month-end’ or abbreviated to ‘ Net EOM 30’. ‘2/10 Net 30’ Meaning. In a Nutshell these terms mean. The 2/10 net 30 trade credit is a popular agreement between suppliers and buyers. This looks at the big picture sale price, while net looks at the end profit. Not every business offers the same credit terms to the same customers. g. Walmart . What does net 30 mean on an invoice? This is a variation of Net 30 that offers a discount for early payment. For example, small business owners will often offer net 30 terms with a 2 percent payment discount if the client offers a full payment within 10 days. Net 30, a term found on invoices, simply means a customer has 30 days from the invoice date to pay the bill in full. However, this payment type offers a discount of 2% for clients who submit payment within 10 days. This means the customer has 60 days to pay their invoice in full after the order delivery or fulfillment. Doing so will help build business. Related: Integrative Negotiation: Definition, Tips and Examples. . , “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. A firm currently has annual sales of $15 million, average collection period of 30 days and terms of net 30. It means the buyer or the customer will receive a 2% discount on the total invoice amount if the payment is made within 10 days. 3/20 net 60: 3% early payment discount within 20 days, or the total amount of the invoice due in 60 days. , sells earnings forecasts for Japanese securities. You may also encounter net 15, net 45, net 60, and others. 15, payment would be due 30 days from Nov. You first need to calculate your net profit for a given period of time (usually a week or month). For instance, many businesses offer net 30 terms that have a 2% discount included if the customer pays within 10 days (2/10). Learn how net-30 can improve cash flow, credit, and payment processing. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. Most small businesses use net 30 as their standard credit term. 5 marks) b) FIN222 Ltd purchases supplies on terms of 1/10, net 30. What exactly does ‘net 10’ or ‘net 30’ mean? On an invoice, net 30 means payment is due thirty days after the invoice date . What does 2/10, n/30 Mean? 2/10, n/30 or 2/10, N 30 refer to the accounting term in which seller provides the cash discount to customers. However, the convenience of fast cash comes at cost that can erode your profit. “Net” means that the full amount is due for payment. 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. On a yearly basis this would mean a cost of discount of 12. When an invoice is due in 30 days, this means that the payment is due 30 days from the date of the transaction. End-of-month (EOM) terms operate differently: This type specifies that a payment is due after a set number of days once the month ends. Here are examples of net 30 payment terms combined with discounted rates for early payment. 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. Say you sent a $600 invoice with net 2/10 30 terms to your customer on April 2. Net 90 Payment Terms ExamplesWhat does Net 30 mean in business? Net 30 is a payment term used in the business world, which means that the buyer has thirty days from the invoice date to make payment. As mentioned above, 2/10 N/30 summarizes the Amount and the Timing of payment that Box Lighthouse has to make for Jamie's Light Manufacturing. This serves to encourage clients to pay more over a shorter period of time. It means customer will receive 4% cash. 98 = $9,800. - The notation "net30" indicates that full payment is expected within 30 days. What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. In other words, you can pay within 10 days and deduct 1% from the invoice amount or pay the full amount in 30 days. 5, 9. Under 2/10 net-30 terms, you would receive a 2% discount if you pay your invoice within 10. 1 Percent of 10 NET 30 usage in. "2/10 net 30" is a commonly used payment term in business transactions. Expands your customer base. It means that the buyer must pay the full amount of an invoice within 30 days, but they may receive a 1 percent discount if they pay within 10 days. These opportunities to reduce costs often also mean you can build your credit faster since early invoice. 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. At its most basic level, Net 30 refers to the number of days a vendor or supplier has to receive payment for goods or services provided to a customer. EOM stands for the end of the month. 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. In this instance, the buyer will receive a 2% discount if they pay off tradeline credit in full up to 10 days after the invoice. The "1%/10" part of the payment terms means that if the bill is paid within 10 days of the invoice date, the customer will receive a. In the 1%/10 net 30 calculation, cash discounts are provided on purchases. If you find yourself. 98) What this means is that there are a number of spaces available in this building, ranging from 829 square feet (I’ll abbreviate this “sf” for simplicity) to 2348sf. It exemplifies a payment agreement between the business and customer, with specific expectations on both parties to ensure payment is made on time. Net 30 is a payment term included in an invoice. 04% for the 20 days between day 10 and day 30. ”. g. Net 60—you guessed it—signifies payment is due 60 days after the invoice date. 1/15 Net 30: This means the customer receives a 1% discount if payment is received within 15 days. 3n10 net30 This is usually the way it's stated (or something similar) 2n10 net 30 means a 2 percent discount if paid within in ten days of the invoice date with full payment due in 30 days. 5 U. b. NET 30 terminology is for invoicing. 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. If the customer doesn’t take the early payment discount, the invoice is due for payment within 30 days. This discount is intended to encourage customers to pay more quickly. Net 30 is also sometimes written as n/30 or 1/10 n/30, which means you can get a 1% discount if you pay within 10 days. Otherwise, the total amount is due within 30 days. 8. Businesses will often provide clients with net 30 terms with a 2% discount if they pay within ten days. The lease on the space ranges from $22 to $25 per square foot, presumably depending on location, windows, and the desirability of the. What does “2/10 net 30” mean? Net 30 terms are often coupled with a discount for early payment to encourage the client to pay more quickly. This early payment discount formula incentivizes buyers to settle their invoices promptly. Net terms can vary and include a discount for quick payments (for example 5% 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. 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. 2% discount allowed on payments made on or before. c. If your vendors or sellers offer the 2/10 net 30 discount and you want to pursue it. 2/10 Net 30: 2/10 Net 30: The seller is offering the customer an optional early payment discount of 2% if the invoice is paid within ten days of the invoice date, or the total amount of the invoice is due. Simply put, net 30 on an invoice means payment is due thirty days after the date. 04% for the 20 days between day 10 and day 30. 1% 15, Net 30 means you are required to pay the invoice in 30 days, but if you can pay in 15 days, you can deduct a. 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. What does 3/10 net 30 mean? Same as the previous example. 2%/10 days, Net 30 terms (2/10 Net 30) 2% discount if you pay within 10 days. Standard payment terms. The invoice amount is $10,000 and 2/10 net 30 accounting is in place. ”. For example: Johnny’s gross earnings for his lemonade stand were $25, and he only spent $7 on the lemonade and cups, so he was pleased with walking away with $18 at the end of the day. Newton's second law tells us exactly how much an object will accelerate for a given net force. Total invoice amount $ 2,700. What does net10 mean? (also net 10 prox); (also net 10th prox) abbreviation for net 10 days end of month: written on an invoice to show it must be paid within ten days of the beginning of the following month. Just below the nutrition facts box, the "impact carb facts" box provided by the manufacturer explains, "Fiber. The key to Net 30 accounts is to pay the invoice on time. Net 30 is a type of payment agreement where the customer agrees to pay the invoice within 30 days of receipt. One of the most frequently used payment terms, net 30 is a credit term extended to your customers requesting tha. 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. Copy. 2/10 Net 30. 2, 10, 10. See moreWhat Does 1%/10 Net 30 Mean? 1. So Net 30 means that the buyer will pay the seller in full on or before the 30th calendar day, including weekends and public holidays. a = Σ F m. The goal of 2/10 is to encourage early. It could be 30 days from. ” In this case, “net 30 payment” refers to the payment deadline, the first number (1) denotes the percentage discount, and the second number (10) indicates the period during which the discount is valid. The 1%/10 net 30 calculation is a way of providing cash discountson purchases. 9 What do trade credit terms of 2/15 net 30 mean to a buyer?. As such, contracts and invoices will often have these terms written out as “2/10 Net 30. A form of trade credit, net 30 accounts allow customers to pay up to 30 days after the invoice date. Net 15 means payment is due in 15 days. What does net10 30 days mean? The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. In this case, if the amount due is paid within 10 days, the customer receives a 3% discount. . Net 10, net 15 and net 30 are not only common invoice payment terms, they also function as a form of credit. Legally speaking, net 30 means. Defining “1%/10 Net 30” At its core, “1%/10 Net 30” is a payment term that outlines the conditions under which a buyer must. 6, 6. Depending on the invoice terms, this. After 10 days, the full amount of 800 is due within 30 days of the invoice date. Total invoice amount $ 2,700. In what context does the phrase 3/10 n 30 make sense? Discounts for taking more than one step Using the example of 3/10, 1/20, net 30, it means that a 3 percent discount is available for payment within 10 days, a 1 percent discount is available for payment within 20 days, and the whole invoice amount must be paid within 30 days of. Net profit margin is the net profit your business makes expressed as a percentage. The number after the net indicates the. What does 2/10 net 30 mean in accounting?Indication "2/10, n/30" (or "2/10 net 30") on an invoice represents a cash (sales) discount provided by the seller to the buyer for prompt payment. On net 30 terms, the customer must pay within 30 days of when the invoice for a product or service was provided. In other words, it’s a payment term that specifies when the payment for the goods or services rendered is due. As an example, if the invoice amount is $500, calculate the 2/10 net 30 annualized interest rate: $500 x (100% – 2%) = $500 x 98% = $490. In other words, Net 10, Net 20, Net 30 are. 5 marks) b) Explain how a negative cash conversion cycle arises. 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. End of month terms. 2/10 Net 30 . This is. Here are the key takeaways on offering net 30 terms: Offering net 30 terms means you extend credit to you customers. The 30 day period starts on the date of the invoice. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days. It may be. Some businesses expect payment much. ” It’s. Other net terms examples might include net 10 for 10 days, net 60 for 60 days, etc. It refers to a payment period, meaning the customer has a 30-day length of time to pay the total amount of their invoice. 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. i) Here, the firm can repay in 30 days if they do not opt for a discount. In this case, the retailer essentially paid (or gave up) $20 in order to postpone payment for. "Net 10" means that payment is due 10 days from the date of the invoice. 2. For example, if you send your invoice on Oct. The abbreviation “EOM” means that the payer must issue payment within a certain number of days. If this is what you are talking about it means that you can take a 2% discount if it is paid. Always pay on time— early if possible— to establish a good payment history. So, net 30 means 30 days until the payment is due. What does 1-30 mean? Information and translations of 1-30 in the most comprehensive dictionary definitions resource on the web. If a buyer is able to pay an invoice in full within the first ten days, they will receive a 2. What does “2/10 net 30” mean? A customer enjoys a 2% discount if the amount due is paid within 10 days of receiving the invoice. In this case, net 30 means the vendor wants to be paid within 30 days from the invoice date. Other common net terms include net 60, for 60 days, and net 90, for 90 days. Most small business owners will have heard of Net 30 payment terms. If a $1000 invoice has the terms "net 30", the buyer must pay the full $1000 within 30 days - The notation "2% 10, net 30 "indicates that a 2% discount can be taken by the buyer only if payment is received in full within 10 days of the date of the invoice, and that full payment. If the Invoice is dated after the 15th of the Month, then it is due on the 10th of the Following Month. For example, 3/10 net 30 payment terms mean the buyer will receive a 3% discount if they pay within a 10-day period. For example, 2 + 2 ≠ 5 - 2. It means the vendor is offering a 2% discount for a customer payment within ten days of the invoice date. This is how it is defined: Any Invoice dated from the 1st of a given month to the 25th, will be due by the 10th of the following month. *. This means that if the buyer pays the invoice within 10 days of receiving it, they will receive a 1% discount. Net 30 : The invoice is due for payment by the customer within 30 days of the invoice date. You do this by combining all of your expenses during this time (cost of goods, other expenses, taxes, and debt) subtracting them from your total income that. 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. On contracts and invoices, you’ll see these terms written out as “2/10 net 30. Similar to net 15, these other payment terms require payment to be made within the set number of calendar days indicated by the invoice. This discount serves as an incentive for prompt payment. Otherwise, the total amount is due within 30 days. For example, if an invoice due date is January 1st and it states “net 30,” then the payment is due on or before January 31. What does net mean in payment terms? “Net” means that the full amount is due for payment. 2/10 represents a 2 percent discount when payment is made to the supplier within 10 days of the credit sale. Question: Question 4 (10 marks) a) What does the term ‘2/10, net 30’ mean? (1. 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. Net 30 is a credit agreement, although usually without interest. What does 1. 2/10 net 30 means that if the amount due is paid within 10 days, the customer will enjoy. Best Answer. Technically, there. 1% discount is allowed if the bill is paid within 10 and 30 days. So a Net EOM 5 is. Variations: net 7, net 10, net 60, net 90. b. What does -30- mean? Information and translations of -30- in the most comprehensive dictionary definitions resource on the web. 3/10 net 30 means a 3% discount if a customer pays within 10 days. If payment is not made within 30 days, the customer may. For example, with a term of 2% 10 Net 30, the buyer may. So, 2/10 net 30 means you must have to pay all amount within 30 days and if you pay in full within 10 days then you'll get a 2% discount. If a customer makes payment within 10 days to pay, they will get a 1% discount. 10 percent discount for payment within 30 days. Net terms. It represents an agreement that the buyer will receive a 2% discount on the net invoice amount if they pay within 10 days. 2/10 Net 30. , “net 10 days”) are forms of trade credit which specify that the net amount (the total outstanding on the invoice) is expected to be paid in full by the buyer within 10, 15, 30 or 60 days of the date when the goods are dispatched. 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. However, this may be illegal as an employer paying their staff, contractor or not. It means the vendor is offering a 2% discount for a customer payment within ten days of the invoice date. An example of such an agreement is 1/10 Net 30. Definition of 1. What Does 1/10 Net 30 Mean? 1/10 net 30 means that a buyer gets a 1% discount if the total balance is paid within 10 days. ” 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. Thus, terms of “net 20” mean that full payment is due in 20 days. By definition, using Net 30 terms delays the flow of cash into your business. Benefits of a Net 30 Account Net 30 is a term included in the payment terms on an invoice. 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. Net 10, net 15, net 30 and net 60 (often hyphenated “net-” and/or followed by “days”, e. The 1%/10 net 30 calculation addresses the credit terms and payment. Net 30 end of the month means that full payment is due 30. d. It is so standard across the business world that, for example, clients in the UK have a legal obligation to pay their suppliers within 30 days. Net 30 payment terms can help to retain existing clients. Another common sales discount is "2% 10/Net 30" terms, which allows a 2% discount for paying within 10 days of the invoice. Following the logic, net 60 would mean 60 days, 90 = 90 days, and so on. ($500/$490) – 1 = 2. In the case of net 10, it is within 10 days—suitable when you expect an early payment. Say you sent a $600 invoice with net 2/10 30 terms to your customer on April 2. The customer suggested 2% 30 day terms. Mean Calculator helps to find the mean or average value from the given set of numbers. What does the word “net ten” mean on a bill? Net 10, net 15, net 30, and net 60 (often hyphenated “net” and/or followed by “days,” e. This means that if the buyer is able to fulfill the invoice amount of the. To illustrate, for example 2% 10 days, net 30 terms or 2/10, n/30 means, that a 2%. 3/10 Net 30. It means that if the bill is paid within 10 days, there is a 1% discount. Learn more. 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. It means that if the bill is paid within 10 days, there is a 1% discount. However, this payment type offers a discount of 2% for clients who submit payment within 10 days. Often if the customer does not pay within the 30 day period, interest is charged. . ) Cancel Which simply means if the buyer pays the invoice within 10 days, they will receive a 2% discount. That’s a 36% return on cash for the discount. In our example, the company must either pay $98,000 in 10 days or they must pay $100,000 by the 10th day after the end of the month. This early payment discount can be used to reward those customers who have consistently paid on time under the 1/10 Net 30 by providing an additional five days. Merchants often offer credit for early payment to encourage customers to pay their invoices faster. The Difference Between Net 15, Net 30, and Net 60. With a net-30 invoice, the client has to pay within 30 days or less. This type of transaction is common in business, and it is. When Does Net 30 Start? Net 30 could mean 30 days after the sale, 30 days after delivery. 41 percent: 2 %/ 98% [100% - 2 %] x 365) / 60. What does the credit term 1/10 Net 60 mean? 1/10 Net 60. What does 10 net 30 mean? The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. If you are purchasing goods, its usually combined with a discount. For example, if you invoice your client with a payment term of net 30 EOM on October 13th, the payment will be due on November 30th - 30 days after October 31st. Otherwise, the total amount is due within 30 days of the invoice date. 4, 7. . End-of-month (EOM) terms operate differently: This type specifies that a payment is due after a set number of days once the month ends. At first glance, it may look confusing, but by breaking it down, you will quickly realize that 1/10 net 30 is actually a relatively simple concept to understand. If the customer pays the full amount between April 2 and April 11,. This would be expressed as “1/10 net 30. Some businesses expect payment much sooner, so you may also see net. Net profit is calculated by deducting all company expenses from its total revenue. What does 'net zero' mean? Net zero means no longer adding to the total amount of greenhouse gases in the atmosphere. Similarly, 2/10 Net 30 means that the purchaser will receive a 2% discount if you get paid within 10 days of purchase. $900: Net 60 days: The net amount is due within 60 days of the invoice date. Manage your cash flow properly, regardless of what your customers are doing. Thus, terms of “1/10 NET 30” mean that a discount of 1% can be taken if payment is made within 10 days. Trade Credit: A trade credit is an agreement in which a customer can purchase goods on account (without paying cash), paying the supplier at a later date. Just like 1/10 Net 30, with terms of 2/10, n/30, the “2” represents 2%, the “10”. However, this may be illegal as an employer paying their staff, contractor or not. 1plus1plus1equals1 net what does 1 10 net 30 mean in. But net 30 is not the only term you’ll run into.