Credit terms of 1/10, net 30 means,

The credit terms "1/10, net 30" are commonly used in business transactions and indicate the following:

1. Discount Offer: The "1" in "1/10" represents a 1% discount that is available if payment is made within 10 days of the invoice date. This encourages customers to pay early and take advantage of the discount.

2. Net Payment Due: The term "net 30" indicates that the total invoice amount is due in full within 30 days, regardless of whether or not the early payment discount is taken.

In practice, this means that if a buyer receives an invoice, they can either pay the full amount within 30 days or pay 99% of the total (taking into account the 1% discount) if they pay within the first 10 days. If they do not make a payment within the 10-day window, the full amount becomes due after 30 days.

This system helps businesses manage their cash flow by incentivizing quicker payments and helps buyers save some money when they can afford to pay sooner.