What Is 2/10 Net 30?
2/10 Net 30 means a customer gets a 2% discount if they pay within 10 days of the invoice date, and otherwise owes the full amount within 30 days. It's an early-payment discount term, common in the US but far less common on New Zealand trade invoices.
What 2/10 Net 30 Means
The "2/10" is the discount: 2% off the invoice total if paid within 10 days of the invoice date. The "Net 30" is the fallback: if the customer doesn't pay within that 10-day window, the full invoice amount is due within 30 days, with no discount attached. "Net" means the full amount, exactly as it does in plain Net 30.
It gives the customer a choice: pay early and save a small percentage, or take the full 30 days and pay the full amount.
The Maths
| Invoice total | Paid within 10 days (2% discount) | Paid within 30 days (no discount) |
|---|---|---|
| $1,000 | $980 | $1,000 |
| $5,000 | $4,900 | $5,000 |
| $25,000 | $24,500 | $25,000 |
A 2% discount for paying 20 days early works out to a substantial effective annual rate — often cited at around 36% when annualised — which is why some larger buyers treat taking the discount as a smarter use of cash than almost any alternative.
Is This Common in NZ?
Not especially. Early-payment discount terms like 2/10 Net 30 are a well-established convention in US B2B trade, but they're much less common on New Zealand invoices. NZ suppliers more often manage payment speed and risk through the choice of base term itself — Net 7, Net 30, EOM 30 — or through upfront terms like CIA and COD for newer or riskier customers, rather than layering a discount incentive on top of a Net term.
What NZ Suppliers Use Instead
Rather than offering a discount for early payment, most NZ suppliers manage the same problem — cash tied up in unpaid invoices — by tightening the base term for risk-adjusted customers, or by working with a finance partner. PaidTerms Pro lets a supplier get paid upfront on every invoice regardless of the term offered, so there's no need to discount the invoice value just to bring cash in sooner.
Frequently Asked Questions
What does the "2/10" part mean?
It means a 2% discount applies if the invoice is paid within 10 days of the invoice date.
What happens if a customer pays on day 15?
They miss the discount window and owe the full invoice amount, due by day 30.
Is 2/10 Net 30 the same as Net 30?
No. Net 30 alone has no early-payment discount. 2/10 Net 30 adds a 2% discount incentive for paying within the first 10 days.
Do New Zealand suppliers use 2/10 Net 30?
Occasionally, but it's far more common in US B2B trade than on NZ invoices, where suppliers more often adjust the base term itself rather than offering an early-payment discount.
Get Paid Upfront Without Discounting Your Invoices
PaidTerms Pro pays suppliers upfront on every invoice, so you don't need to offer a discount just to bring cash in faster.
Read next: what Net 30 means, or the full abbreviations cheat sheet.
