Ace the CLEP Marketing Test 2026 – Market Your Skills to Success!

The term '2/10 net 30' is a common payment term used in business transactions that outlines the payment conditions set by sellers for their buyers. It indicates that the buyer can take a 2% discount on the invoice total if payment is made within 10 days of the invoice date. If the buyer does not take advantage of this discount, the entire invoice amount is due in full within 30 days. This structure incentivizes early payment, benefiting the seller by improving cash flow while offering buyers a saving. Each component of the term underlines specific payment expectations, making it crucial for both parties to understand.