oboloo Glossary

2 10 Net 30 Payment Terms

oboloo Glossary

2 10 Net 30 Payment Terms

2 10 Net 30 payment terms are a business practice that allows customers to take advantage of discounts when making payments. It tells customers that if they pay their invoice within 10 days, they will receive a 2 percent discount. If the invoice is not paid in full after 30 days, the customer is then subject to accrue interest on the remaining balance. This encourages businesses to receive payments in a more timely manner and helps them grow financially. When used correctly and consistently, 2 10 Net 30 payment terms can be beneficial to both businesses and customers alike.