net 30

  

Definition

A specific type of trade credit where the payment is due in full 30 days after the item is purchased. Businesses will often offer a discount with this situation, to encourage the customer to pay quicker. For example, a business might offer a 2% discount if the customer pays within 15 days. On the bill, this would be written as 2/15 net 30.

Use net 30 in a sentence

  • The terms of payment were agreed to be NET 30, some clients chose to pay in 45 days and that is fine too.

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  • I did not realize that I was under a Net 30 agreement and would have to finish the transaction within 30 days.

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  • You need to always make sure that you get everything paid off within the time limit if you enter into any net 30 agreements.

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