The official business definition of 2/5 N/30 is a type of payment term used in invoicing. It is a common term used when dealing with credit transactions and is an abbreviation for two-fifths, net 30. This means that the buyer must pay two-fifths of the invoice amount right away and the remaining three-fifths must be paid within 30 days. This payment term is considered quite favorable to the buyer since they have the flexibility to pay the remaining balance over a longer period of time. It is also beneficial to the seller since they receive a portion of the payment up front. In order for this payment term to be accepted, both parties must agree on it. Both sides must also agree on the amount of the invoice and the payment due dates. The seller should also ensure that the buyer is financially stable and can meet their payment obligations in order to avoid any potential non-payment issues. 2/5 N/30 is a useful payment term to