1%/10 Net 30

Accounting Corporate Finance Financial Terms Dictionary

Contents

Deal 1%/10 net 30 is when a 1% discount is offered on services or products if paid within 10 days of the 30 day payment agreement.

The cost of credit is used as a percentage and occurs when the buyer does not take the reduced cost, thus paying a higher cost reflecting the discount loss.
The merchant may offer early payment incentives to speed up cash flow, which is especially important for businesses that do not have revolving lines of credit.