In B2B transactions, what does Net15 or Net 30 mean?
Answer:
Girl who knows. is exactly right. As an example, carpet is usually sold at 5/10, 3/20, net 40. If you buy a $100 piece of carpet (wholesale) and you pay for it within 10 days, it only costs your company $95. If you pay in 6 to 20 days, it costs you $97, and if you pay in 21 to 40 days, it costs $100. After 40 days, they can charge a finance charge for any amount not paid when due.
net is the amount you owe them - so if you have net 15, it means you have to pay them what you owe them in 15 days - net 30 in 30 days. Sometimes it's 2/15, net 30, which means you take a 2% discount if you pay in 15 days, but have to pay the entire amount in 30 days.
it's the number of days that the purchaser has to pay the supplier for the merchandise, 15 days, 30 days, etc.
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