4/20 Net 30 the specific payment terms of a transaction. It means that the buyer must pay the seller in full within 30 days of receiving the goods or services, with a 4% discount if they pay within 20 days. 4/20 Net 30 is a common payment term used by manufacturers and wholesalers. It allows the seller to receive payment faster while giving the buyer an incentive to pay on time. It also helps to reduce the seller’s risk of bad debts, as buyers have an incentive to pay early in order to receive the 4% discount. 4/20 Net 30 is a flexible payment term; it can be altered to fit the needs of both parties in the transaction. For example, the buyer can request a longer period of time to pay, or the seller can offer an earlier discount date. Ultimately, 4/20 Net 30 is an efficient way for buyers and sellers to reach an agreement on a payment plan that works for both.