Cash discount, also known as sales discount, is a certain discount given by enterprises to encourage buyers to pay as soon as possible during the credit period. It is a means to remind the account. The conditions of cash discount are usually written as "cash discount/discount period, n/ repayment period", such as "3/ 10, 2/20, n/30", 3/ 10. 2/20 means that 1 1 day is less than 20 days, and you can enjoy a 20% discount; N/30 means that the longest time allowed for credit is 30 days, 20 days or more, so you don't enjoy cash discount and pay at the original price. Cash discount is generally 1%~5% of the invoice amount.

The conditions of cash discount involve discount rate, discount period and repayment period, in which the repayment period refers to the longest time that the seller allows the buyer to default on the payment, also known as the credit period, and the general repayment period is 30 days. Exceeding this time limit will be regarded as breach of contract. Discount rate is the discount percentage provided by the seller and paid by the buyer during the discount period; Discount period refers to the payment time when the seller gives the buyer a cash discount; Generally speaking, the shorter the discount period, the greater the discount rate, and vice versa.

Supplementary question: Is the cash discount rate a cash discount? How is the discount rate calculated?

Cash discount rates such as "3/ 10, 2/20, n/30" and "3/ 10" mean that you can enjoy a 3% discount if you pay within 10 days; 2/20 means that 1 1 day is less than 20 days, and you can enjoy a 20% discount; N/30 means that the longest time allowed for credit is 30 days, 20 days or more, so you don't enjoy cash discount and pay at the original price. Cash discount is generally 1%~5% of the invoice amount.