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Credit policy

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15 April 2015 what does 2/10 net 45 mean
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CA Subham Verma

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CA Subham Verma (Expert)
15 April 2015 2/10 net 45, defined as the trade credit in which clients/customers can opt to either receive a 2 percent discount for payment to a vendor within 10 days or pay the full amount (net) of their accounts payable in 45 days, is extremely common in business to business sales. Anywhere a vendor offers credit terms it is likely that they also offer some discount to motivate early payment.
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