• 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.