Re: blonde moment - what is 12/10 wholesale term?
Posted by John on May 25, 2002 at 06:27:29:
In Reply to: blonde moment - what is 12/10 wholesale term? posted by June on May 23, 2002 at 11:46:07:
I was hoping someone would come forward here.
The term "2/10, net 30" is fairly standard. It means that the customer can take a 2% discount on the invoice for paying in 10 days, or he/she can pay the face value of the invoice in 30 days.
12/10 sounds like highway robbery if it indeed means a 12% discount for paying in 10 days. That's like one of those payroll day loans you see advertised. In this case that's 440 per cent annualized interest on an uncompounded basis!
2% is bad enough, but at least you can rationalize that it is roughly equivalent to covering the merchant fee when you take a credit card as payment.
If you find that it means something else, let me know;^)