2/10 Net 30
Definition
A payment term offering a 2% discount if the invoice is paid within 10 days, with the full amount otherwise due in 30 days. It rewards customers for paying early and speeds up cash collection.
Related Terms in Invoicing & Sales
Early Payment Discount
A reduction a seller offers to encourage customers to pay before the due date. It improves cash flow for the seller at the cost of a small margin, and lowers the cost of goods for prompt buyers.
Late Payment Fee
A charge added to an invoice when it is paid after the due date, intended to discourage slow payment and compensate for the delay. Its enforceability and rate may be governed by contract or law.
Quote (Quotation)
A document giving a customer a fixed or estimated price for goods or services before they commit. Accepting a quote often converts it into a sales order or invoice.
Estimate
An approximate statement of the likely cost of a job before the final price is settled, common in trades and services. Unlike a firm quote, it can change as the scope of work becomes clearer.
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