The official business definition of Credit Terms 2/10 N/30 is a payment term that offers customers a discount for paying their invoices within 10 days of the invoice date. This term allows customers to receive a 2% discount if they pay within 10 days, otherwise they must pay the full amount within 30 days. This type of payment term is often used to encourage customers to pay their invoices promptly, as it provides them with an incentive to do so. It also helps businesses to manage their cash flow more effectively, as they can receive payment earlier than expected. This type of payment term is beneficial for both the customer and the business, as it helps to ensure that payments are made on time and that customers are rewarded for their prompt payment.