Question

If an invoice lists payment as being net 10, it means payment is ______.

Answer 1

An invoice stating 'net 10' indicates that full payment is due within 10 days of the invoice date, with no discount for early payment.

Step-by-step explanation:

If an invoice lists payment as being net 10, it means payment is due within 10 days of the invoice date. This is a standard payment term used to communicate when a payment is expected by the seller. It encourages timely payments and also allows for better cash flow management for businesses.

The term net 10 implicitly demands the full payment and doesn't imply any discount for early payment, unlike terms such as 1/10, net 30, where a discount is offered for early payment. Understanding these terms is crucial for effective financial management and to avoid potential late fees or damaged business relationships.