Definition of Net Cash

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TeachMeFinance.com - explain Net Cash



Net Cash -- Payment for goods sold without any deduction allowed from the price.

historic definition...

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 prompt payment.



About the author

Mark McCracken

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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