Financial & invoicing terms explained
Early payment discount
Early payment discounts reduce the invoice amount if the customer pays before a deadline.
Common notation
“2/10 Net 30” means 2% discount if paid within 10 days; otherwise full amount by day 30.
Cash vs margin
Discounts trade margin for faster, more predictable cash.
Communication
Repeat terms on the invoice near the total and in the payment link.
Early payment discount — FAQ
- 2/10 Net 30?
- 2% discount if paid in 10 days; otherwise full amount by day 30.
- Accounting?
- Record discount as expense or contra-revenue per policy.
- Always offer?
- Weigh cash acceleration vs margin—test on key accounts.