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
Copyright © 2005 by Mark McCracken, All Rights Reserved.
TeachMeFinance.com is an informational website, and should not be used as a
substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any
investment or financial decision.
Please read our disclaimer.