What is 1%/10 net 30?
A way of providing cash discounts on purchases. It means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days.
For example, if “”$1000 1/10 net 30″” is written on a bill, the buyer can take a 1% discount ($1000 x .01 = $10) and make a payment of $990 within 10 days, or pay the entire $1000 within 30 days. Read more for examples and further explanation including related video clips and also comments
Example explains 1%/10 net 30
Manufacturers offer discounts like this to encourage retailers to pay quickly.
This calculation is the same regardless of what discount is used. For example “”2/10 net 30″” just means there is a 2% discount.
