“2/10 net 30” is a payment term commonly used in business-to-business transactions. It indicates that the buyer can take a 2% discount on the invoice amount if the payment is made within 10 days of the invoice date. If the buyer chooses not to take advantage of the discount, the full invoice amount is due within 30 days.

Here’s a breakdown of the term:

• 2% Discount: The buyer can reduce the invoice amount by 2% if payment is made within 10 days.
• 10 Days: The timeframe within which the buyer must pay to take advantage of the 2% discount.
• Net 30: The full invoice amount is due within 30 days if the buyer does not take the discount.

This term is often used to incentivize early payment, which can improve the seller’s cash flow.