Early Payments Hub

Net 30 is a common payment term for businesses selling to other businesses. It means you are giving your customers and clients 30 days, including weekends and holidays, to pay an invoice. 

Payment terms are specifications of amounts owed, how, when, and where payments are due on sales transactions between sellers and buyers. Payment terms from a contract or purchase order are included on an invoice to the customer. Although payment terms may be negotiated, often the seller sets payment terms for routine sales transactions. 

A net 30 account is 30-day trade credit on invoices for business purchases, also known as a net30 tradeline or vendor tradeline. Net30 accounts offered by vendors extend credit to customers with net 30 terms. Business customers timely pay for purchases without interest charges. They improve their cash flow and build business credit history.

2/10 net 30 are payment terms where the payee will receive a 2 percent discount on the balance owed if payment is made within ten days; otherwise, the full invoice balance is due in 30 days.

An early payment discount is a form of trade finance and a means for companies to obtain a discount on vendor invoices when paying early. A business pays less than the full amount due while the supplier receives payment earlier than standard payment terms. It benefits both accounts receivable and accounts payable and helps add to your bottom line.