Mar 18, 2021
Creative credit terms are becoming more broadly used in the B2B world. As your resource for all credit matters, here’s to making sure you have exposure to this creativity. Are you familiar with these credit terms?
30 3WD – 30 days, then the 3rd work day. So if the invoice is scheduled to pay on a Sunday for example Sunday January 24th, it wouldn’t actually be released until the third work day after the 24th, so the 27th.
2/10, N30, EOM – EOM stands for end of month. You will receive a 2% discount if you pay your account within the first 10 days of next month with a maximum credit period of 30 days.
2/10, ROM – ROM stands for receipt of goods dating method. You will get a 2% discount if you make the payment within the first 10 days after the goods are received.
1/15 PROX – Prox means next. You will receive a 1% discount if paid by the 15th of the following month.
1% Net 30 – You will receive a 1% discount if the bill is paid within 10 days, instead of taking advantage of the whole 30-day period.