How the yearly rate is worked out
The client gets the discount for paying (net days − discount days) earlier. Yearly rate = discount ÷ (100 − discount) × 365 ÷ (net days − discount days). For 2/10 net 30: 2 ÷ 98 × 365 ÷ 20 = 37.24%. This page uses a 365-day year.
Is offering a discount worth it for you?
You give up the discount to get paid sooner. It can make sense when cash arrives earlier than a loan would cost, or when it shortens your wait on slow payers. Write the terms clearly on the invoice: the percentage, the deadline as a date, and the full amount due afterwards.
QuickBilling sends reminders before and after the due date, so you get paid sooner without a discount. See how getting paid works.