The 1%/10 net 30 calculation addresses the credit terms and payment. Manage your cash flow properly, regardless of what your customers are doing. $900: Net 60 days: The net amount is due within 60 days of the invoice date. What do the credit terms of 2/10 net 30 mean? 2/10 net 30 is a trade credit offered by the seller. Net 30 allows customers to pay early or anytime before the 30 days expire, but after that, the account becomes past due. e 1/10) otherwise, customer can choose to to pay at any time before expiry of 60 days. Add up all full-time hours: Two full time (40 hours per week) employees:2,080 x 2. The 2 represents the discount percentage, while the 10 indicates the number of days in which the payment needs to be received to receive that discount. 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. What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. A typical discount payment term offered by vendors is 2/10 Net 30. An NPS of 50 means that at least 50% of your respondents are promoters, and fewer than 50% detractors. 2/10 Net 60 means that the buyer receives a 2% discount if the. Always pay on time— early if possible— to establish a good payment history. The abbreviation “EOM” means that the payer must issue payment within a certain number of days. What does Net 30 mean? On an invoice, Net 30 means payment for an invoice is due thirty (30) days after the invoice date. It is important to understand this payment term, so that. 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. Other net terms examples might include net 10 for 10 days, net 60 for 60 days, etc. , “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. NET system includes tools, libraries, and languages that support modern, scalable, and high-performance software development. Net 10, net 15, net 30 and net 60 (often hyphenated "net-" and/or followed by "days", e. At the basic level, net-30 refers to the time frame in which the full amount must be paid by a client. In other words, if you receive an invoice that says “Net 30”, you have 30 days from the date of the invoice to pay the vendor in full. Such an agreement or offer is written on an invoice as “2/10 net 30. Copy. That’s a 36% return on cash for the discount. With the "Net 30 EOM" term, EOM stands for "end of the month. Related AccountingTools Courses Net 10 means payment is due 10 days after the invoice date. It means that if the bill is paid within 10 days, there is a 1% discount. Let’s start by dissecting the term “2/10 Net 30. Net 10, net 15, net 30 and net 60 (often hyphenated "net-" and/or followed by "days", e. What does it mean if a bond is trading at 92? it is trading at 92% of par value. It could mean 30 days after the sale, 30 days after delivery, or 30 days after the invoice. So, what does Net 30 mean. For example, with a term of 2% 10 Net 30, the buyer may. 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. The term 2/10, n/30 is a typical credit term and means the following: "2" shows the discount percentage offered by the seller. 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). So,. An invoice can be worded as, ‘ Payment due 30 days month-end’ or abbreviated to ‘ Net EOM 30’. 11 min read. ∙ 9y. Simply put, net 30 on an invoice means payment is due thirty days after the date. 5% service charge will apply. 3/10 Net 30. If this is what you are talking about it means that you can take a 2% discount if it is paid. Best Answer. The total bill is due in 10 days if the discount is not taken. 2/10 Net 30 . Usually retailers must pay for the inventory in cash within the first 10 days after purchase to receive the discount. The merchant extends a 30-day credit with this contract, but the client will get a 1% discount if they pay within 10 days. This discount is intended to encourage customers to pay more quickly. Net 30 terms is an example of credit terms used on an invoice. Net 10 means payment is due 10 days after the invoice date. This means that the customer can take an early payment discount of 2%. 04% for the 20 days between day 10 and day 30. Or else the borrower amount is due in full within 30 days from the date of issuance. What does 30 day nett terms mean? 30-day net terms means this is the amount of time a business has to pay an invoice. 1/15 Net 30: This means the customer receives a 1% discount if payment is received within 15 days. This means you, as the business, are offering your customer a short-term, 0% interest loan. Net 30, a term found on invoices, simply means a customer has 30 days from the invoice date to pay the bill in full. This guide. This is a standard payment term for many businesses, and it gives the buyer a month to gather the funds needed to pay the bill. Most small businesses use net 30 as their standard credit term. 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. 5 marks) Here’s the best way to solve it. Learn more about Net 30 Payment Term in an invoice. 2/10 Net 30 refers to the trade credit offered to a customer for the sale of goods or services. 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. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days. The 60 days most often begin on the date the invoice was issued, though that may vary depending on the business’s specific terms. Net 10, net 15, net 30 and net 60 (often hyphenated “net-” and/or followed by “days”, e. The chancellor said that for someone on the average. Thus, terms of “1/10 NET 30” mean that a discount of 1% can be taken if payment is made within 10 days. So. It means that if the bill is paid within 10 days, there is a 1% discount. Yet that doesn’t really tell you how net-30 might help you to build commercial credit or why it can be a great choice of credit for new and old businesses alike. We know objects can only accelerate if there are forces on the object. Of course, this also applies to other. The ‘30’ in Net 30 discusses the length of time allowed for payment. The n stands for net and the first 10 is a. This is not normal. Just like 1/10 Net 30, with terms of 2/10, n/30, the “2” represents 2%, the “10”. 1. . 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,. This is a common payment term used in business transactions. The 2% 10 Net 30 term means that the payment will due in 30 days with a 2% discount if paid within 10 days. Net 15 means that a customer has 15 calendar days to submit payment for the invoice. The term means that payment in full is due 30 days after the date of the invoice. What Does 1%/10 Net 30 Mean in a Bill's Payment Terms? What Does 1%/10 Net 30 Mean in a Bill's. 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. 1/10 Net 30 means that the purchaser will receive at least a 1% discount if you get paid within 10 days of purchase. Answers (12) In payment term what does it mean on this term? 2%/10, net 60. 2/10, net 30 means that if the amount due is pain within days, the customer will enjoy 2% discount. 1/10 net 30, 2/10 net 30, and 3/10 net 30 are the three most common incentives attached to net 30 payment terms. Net 30 refers to the amount owed in full, less any discounts and deductions. 2/10 represents a 2 percent discount when payment is made to the supplier within 10 days of the credit sale. 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. How Does Net 30 Terms Work? Net 30 terms are a trade credit. Quadrant 1: Home 1-30, Neutral 1-50, Away 1-75; Quadrant 2: Home 31-75, Neutral 51-100, Away. Two employees working identical positions may have identical gross pay, but significantly different net pay. Otherwise, the total amount is due within 30 days. This discount is intended to encourage customers to pay more quickly. The quick formula is 100% . For example, 2 + 2 ≠ 5 - 2. , “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. What Does 1%/10 Net 30 Mean in a Bill's Payment Terms? What Does 1%/10 Net 30 Mean in a Bill's. Net 30 on an invoice means that the buyer has 30 days from the invoice date to pay the net amount in full. 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. Invoice date: October 1. These mean payment is due in 10, 15 or 60 days. What does 3/10 Net 30 mean? 3/10 Net 30 is the trade credit offered and if 3/10 is displayed, it means that there is 3% of discount is offered to the borrower if the balance is paid within 10 days from the date of receipt. In this case, net 30 means the vendor wants to be paid within 30 days from the invoice date. The average customer will have a hard time understanding what 2. 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. material made of threads of rope, string, wire, or plastic with spaces between them, allowing…. That’s a 36% return on cash for the discount. 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. In other words, it’s a payment term that specifies when the payment for the goods or services rendered is due. If the customer doesn’t pay within 15 days, then the invoice is due in 30 days with no discount. Net 30 is the payment period specified for a customer for the payment of an invoice issued for a transaction. After 10 days, the full amount of 800 is due within 30 days of the invoice date. borrow it 10 million dollars at 5% but, we'll get into. It may be. Net 30 is short for what might read, “Payment is due within 30 days of the date specified. The sales number reported on a company's. Net 30 payment terms can help to retain existing clients while. 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. 1 Percent of 10 NET 30 usage. It indicates when the vendor wants to be paid for the service or product provided. None of the above. Table of ContentsWhat is Net 30?Understanding Net 30When Does Net 30 Start?Net 30 vs. Other common net terms include net 60 for 60 days and net 90 for 90 days. Unlock savings with 1%/10 Net 30! Discover how this billing term can boost your finances. What does 10 percentage mean? 10 percent of 100, a tenth, ten cents out of 1 dollar, 10 dollars out of 100. It represents an agreement that the buyer will receive a 2% discount on the net invoice amount if they pay within 10 days. Calculated amount of the discount @2% $ 50. Net 30, a term found on invoices, simply means a customer has 30 days from the invoice date to pay the bill in full. What Does Net 30 Mean on an Invoice Net 30 is a term included in the payment terms on an invoice. What does -30- mean? Information and translations of -30- in the most comprehensive dictionary definitions resource on the web. What does 1% 10, net 30, and Net60 mean? This is expressed as a notation like “1% 10, net 30” or “1/10 net 30. The net-net investing method focuses on current assets. Learn more. This discount is 2% of the total balance and only applies if the customer pays the invoice in 10 days. We would like to show you a description here but the site won’t allow us. With the "Net 30 EOM" term, EOM stands for "end of the month. Depending on the invoice terms, this. 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. The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. It exemplifies a payment agreement between the business and customer, with specific expectations on both parties to ensure payment is made on time. Offering net 30 terms can help to broaden your customer base tremendously, as many customers appreciate the 30-day payment option, particularly those that may be. 1. For example, if your client’s invoice date is May 1 with net 30 terms, payment would be due on May 31. It specifies when the vendor wants to be paid for the product or service they provided. The vendor may offer incentives to pay early to accelerate the inflow of cash. Net terms. Net profit is calculated by deducting all company expenses from its total revenue. This credit term of [ 2/10,n/30 O. This invoice agreement is usually written like 2/10, n/30 or 2/10, net/30. If the customer does not make the payment within the first 10 days then the full amount (net) is due in 30 days. NET 30 terminology is for invoicing. 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. Net 30 terms are often used when the supplier offers a discount for early payment (such as 2% 10 Net 30). 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. The U. If a buyer is able to pay an invoice in full within the first ten days, they will receive a 2. Business professionals consider net 30 payment terms a form of credit. 980 12/8 (within the discount period) Accounts Payable 980 Cash 980 12/15 (without the discount period) Accounts Payable 980 Purchase Discount Lost 20 Cash. Often if the customer does not pay within the 30 day period, interest is charged. ”. Net profit margin is the net profit your business makes expressed as a percentage. When an invoice is due in 30 days, this means that the payment is due 30 days from the date of the transaction. 2% 10 Net 30. However, they may not be 100% familiar with the specifics. This looks at the big picture sale price, while net looks at the end profit. This discount is intended to encourage quicker payment. On the Terms dropdown, click New. 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. Subtotal invoice amount $ 2,500. 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. When a company offers Sales discounts with terms 2/10, n/30, it is broken down as follows, The 2 is the discount in percentage,The vendor's invoice shows the amount of $1,000 along with credit terms of 2/10, net 30 days. What does 30 mean? Information and translations of 30 in the most comprehensive dictionary definitions resource on the web. Otherwise, the total amount is. 2%/10 days, Net 30 terms (2/10 Net 30) 2% discount if you pay within 10 days. Net terms can be an incentive as well as a negotiation tool to win more business. See answer (1) Best Answer. 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. 15, payment would be due 30 days from Nov. On an invoice, net 10 means that full payment is due in 10 days after the invoice date, at the very latest. What does net 2/10 30 mean? Like the net 3/10 30, net 2/10 30 is an early payment discount. Once the customer starts paying on time, the business may extend longer payment terms like net 30 or net 60. Study with Quizlet and memorize flashcards containing terms like Sales discounts with terms 2/10, n/30 mean: a. b. However, this may be illegal as an employer paying their staff, contractor or not. Net 30 end of the month means that full payment is due 30. 5 U. 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). 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. Offering net 30 terms can help to broaden your customer base tremendously, as many customers appreciate the 30-day payment option, particularly those that may be. S. 5, 9. Meaning of 1. Here are examples of net 30 payment terms combined with discounted rates for early payment. The first number signifies the percent discount, the second number signifies the time period for payment when the discount is available, and the ‘net 30’ signifies the overall deadline for payment. It is popular among the sellers because of the mutually beneficial conditions embodied in it: The “2” in the term signifies a discount of 2%, and the “10” signifies a period of 10 days. Otherwise, the total amount is due within 30 days. Act fast for a 1% discount or pay within 30 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. It’s up to you to give the best term to customers. So if you wait for 30 days you will have to pay the full amount ($1200) but if you make the payment within 10 days from the. This phrase is essentially a shorthand for a payment policy that allows customers to receive a discount for paying their invoice within a certain timeframe. 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. 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. For example, in some cases, net 30 means you have 30 days to pay from the date that the goods are delivered. But if the amount due is not paid within 10 days, the customer needs to pay the full amount of the invoice. what does 2/10, net 30 mean. Definition of 1-30 in the Definitions. 30. If not, then they’ve got 30 days to pay. What does the credit term 1/10 Net 60 mean? 1/10 Net 60. Legally speaking, net 30 means. Net 30. Net 60—you guessed it—signifies payment is due 60 days after the invoice date. Net terms such as net 5,10 could be used for newer customers, while net 15, 30. , "net 10 days") are payment terms for 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 or the service is completed. This early payment discount formula incentivizes buyers to settle their invoices promptly. 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. In the case of net 10, it is within 10 days—suitable when you expect an early payment. b. Net 30 payment terms simply mean that the buyer has 30 days to pay the invoice in full. 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. 2/0 net 30. 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. Net 30 is a payment term that can benefit both a buyer and the seller; it allows businesses to benefit from extended credit terms, making it easier for them to manage their finances. c. To illustrate, for example 2% 10 days, net 30 terms or 2/10, n/30 means, that a 2%. In this case, if the amount due is paid within 10 days, the customer receives a 3% discount. Net due upon receipt; Net 30 days (which means the amount owed is due in 30 days) 1/10, n/30 (which means 1% can be deducted from the amount owed if paid within 10 days instead of the required 30 days) 2/10, n/30 (which means 2% can be deducted from the amount owed if paid within 10 days instead of the required 30 days). Net 10, net 15 and net 30 are not only common invoice payment terms, they also function as a form of credit. 4. 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. , sells earnings forecasts for Japanese securities. 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. . 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. Subtotal invoice amount $ 2,500. It means that the client needs to pay the invoice in full within 30 days of the invoice date. Understanding 2/10 Net 30. You may also encounter net 15, net 45, net 60, and others. $980 = $1,000 – (2% x $1,000) If the retailer foregoes the discount, the full amount of $1,000 will be due at the end of the thirty day period. Otherwise, the full invoice amount is due within 30 days. Net-60 gives you 60 days to pay, etc. The customer suggested 2% 30 day terms. Walmart offers a Community Card that gives approved business organizations net 30 terms. An active developer community maintains and supports the . On net 30 terms, the customer must pay within 30 days of when the invoice for a product or service was provided. company does in fact decide to exercise its option to draw down cash from its . 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. It refers to income after accounting for retirement contributions, taxes, and so forth. The first part, “2/10,” refers to a discount available to the buyer if payment is made within a specified period. 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. As a result, when you create a N/10 EOM, you must pay the invoice in full 10 days. What Does 1%/10 Net 30 Mean? 1. 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. Meaning of 30. In the 1%/10 net 30 calculation, cash discounts are provided on purchases. 00 NNN ($6. Technically, there can be any number of net days, but businesses typically choose a 30-day deadline, which is how the term net 30 came to be so popular. The = equals symbol is used to show that the values on either side of it are the same. Total invoice amount $ 2,700. What Does 1%/10 Net 30 Mean? 1%/10 Net 30 is a payment term that offers a discount for early payment. . Economics questions and answers. 1/10 Net 30 means that the buyer will receive a 1% discount if payment is made within 10 days. As such, contracts and invoices will often have these terms written out as “2/10 Net 30. net dictionary. A form of trade credit, net 30 accounts allow customers to pay up to 30 days after the invoice date. For employees, what does net pay mean? Net pay is take-home pay. 1. Net 30 : The invoice is due for payment by the customer within 30 days of the invoice date. In some cases, companies will offer a. Previous question Next question. 8. " This means the payment is due 30 days from the end of the month when the invoice was sent. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. In case you need reference on how to setup or modify the payment terms, you can follow the steps below: Go to Lists at the top. This term implies that customers have the option to pay off the invoice balance early with partial payment. Net worth is a concept applicable to individuals and businesses as a key measure of how much an entity is worth. Payment is due within ten days from the date of the invoice. 10. 1/10. ”. What does 10 net 30 mean? The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. 1/10 Net 30. Net 10, net 15, and net 30 all serve the same function on an invoice, with the exception of the length of time provided to pay the amount credited. 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. 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. “Net” means that the full amount is due for payment. 98 x 100= 980 Accounts Payable. Other net payment terms in the normal course of business include Net 10, Net 15, and Net 60. “Net” means that the full amount is due for payment. Not every business offers the same credit terms to the same customers. 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. In the case of net 10, it is within 10 days—suitable when you expect an early payment. This term helps businesses get their payments faster, especially those without a line of credit. 2/10 Net 30 . 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. So. For example, if a business entered “5% 7 / Net 30”, the customer would apply a 5% discount to the invoice total if paid within 7 days of the invoice issue date. This means that if the buyer pays the invoice within 10 days of receiving it, they will receive a 1% discount. For example, if the terms are Net 15, then the customer must pay within 15 days. Technically, net 30 is a short-term credit that the seller extends to the client. Net 90 Payment Terms Examples3n10 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. The number after net represents the number of days to pay an invoice in full. If you find yourself. 2% discount allowed on payments made on or before. Here are examples of net 30 payment terms combined with discounted rates for early payment. As a verb, gross means “to have, make, or earn as a total before any deductions. 15, payment would be due 30 days from Nov. Wiki User. 5/20 net 30 means. Net 30 : The invoice is due for payment by the customer within 30 days of the invoice date. This is the early payment discount portion of the term, “1/10 net 30”. The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. Quill Net 30. The most common terms for credit sales are net 10, net 30 and net 60. 50 Percent Upfront:What Is . Net worth is the amount by which assets exceed liabilities. Business credit reports may. Simply put, net 30 on an invoice means payment is due thirty days after the date. net dictionary. This is essential when vendors have accounts receivable turnover cycles which exist longer than preferred. 1 Percent of 10 NET 30 usage in. This generous payment term gives suppliers a shorter waiting period for their money than net 30, which requires full payment to be made 30 days after the invoice has been sent. Net 30 means that the full payment is due within 30 days of the invoice issue date. View the full answer. If the invoice isn’t paid within 10 days, it’s due in 30 days with no discount. Net 30 payment terms. Net 60 payment terms. What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. Of course, this also applies to other. 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 1% discount on the total amount due. Customers will receive a two percent discount if the invoice is paid within 10 days, otherwise the full amount is due in 30 days. In other words, it’s a payment term that specifies when the payment for the goods or services rendered is due. Firstly, 2/10, N/30 is referred to as 2/10 net/30. Net 10, net 15, and net 30 all serve the same function on an invoice, with the exception of the length of time provided to pay the amount credited. 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. Economics questions and answers. Expands your customer base. 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. Learn more. By definition, using Net 30 terms delays the flow of cash into your business. Some businesses expect payment much. Compare this 2/10 net 30 annualized interest rate to your bank’s annual interest rate for financing, which is generally much less. 1/10 Net 30 means that the purchaser will receive at least a 1% discount if you get paid within 10 days of purchase. This video covers the definition of 1%/10 Net 30 along with some useful information to help you understand this business term. This is sometimes referred to as 2/10 net-30 terms (though there are other types of similar credit terms as well). Walmart . Learn more about Net 30 Payment Term in an invoice.