“1%/10 Net 30” is a common billing term used in business transactions. It means that the buyer will receive a 1% discount if they pay the invoice within 10 days, otherwise, the full amount is due within 30 days.
1% – the percentage of the invoice that can be taken as a discount if paid within the specified time frame (10 days) 10 – the number of days the buyer has to pay the invoice to receive the discount. Net 30 – the number of days from the invoice date that the buyer has to pay the remaining balance of the invoice (if no discount is taken).
For example, if a buyer receives an invoice for $1,000, they will have 10 days to pay the invoice in full to receive a $10 discount. If they do not pay the invoice within 10 days, they will have 30 days to pay the remaining balance of $990.