What does the term "3/15, n30" signify in sales transactions?

The term "3/15, n30" indicates that the buyer is eligible for a 3% discount if the invoice is paid within 15 days of the purchase date. If the payment is not made within that period, the full invoice amount is due within 30 days. This term is commonly used in sales transactions to encourage prompt payment, allowing buyers to save money if they settle their accounts quickly.

The structure of the term clarifies the discount percentage followed by the time frame for which the discount is valid, and then specifies the net payment period. It demonstrates how sellers can incentivize quick payment and manage their cash flow while providing buyers with a financial benefit for timely payments.