TIPS60 – Using 2/10 Net 30 to Incentivize Faster Payment
Here is another of our videos offering tips and inisights into the business of photography. a transcript of the video is included after the jump.
TRANSCRIPT:Here's an explanation of 2/10 Net 30. I'm John Harrington. 2/10 Net 30 is an accounting term that tells you as the buyer of a product the you can take a two percent discount from the total bill, the total invoice, if you pay in ten days. Otherwise, the net amount is due in thirty days. So if you are sending a bill to a client and you place on the bill 2/10 Net 30 you're trying to provide that client with the incentive to pay that bill within ten days of receipt and therefore allowing them to take a two percent discount. Now a two percent discounts not a big deal when you're talking about a hundred dollars, it's two dollars, thousand dollars, is twenty dollars, so 2/10 Net 30 is really a good incentivisation to give clients to get them to pay you on time or early in this case. So 2/10 Net 30 is a really good accounting tool to get clients to pay you on time or early.
Please post your comments by clicking the link below. If you've got questions, please pose them in our Photo Business Forum Flickr Group Discussion Threads.