TeachMeFinance.com - explain Net Cash
Net Cash -- Payment for goods sold without any deduction allowed from the price.
Net cash. -- ayment upon delivery of the goods. In many markets
sellers have fallen into the habit of allowing to buyers for
cash 10 or some other definite number of days, so that "cash"
is interpreted to mean payment at any time within that number
of days. Thus, it has become necessary to invent another
term for what "cash" formerly meant and "net cash" or "spot
cash" is employed for this purpose.
"Cash" with or without the accompanying adjective "net"
or "spot" means prompt payment upon delivery unless tRe
parties to the contract have been in the habit of interpreting it
in some other sense in their dealings with each other or unless
the common market usage has imparted to it another
meaning; then, some other word must be found to signify
About the author
Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".
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