oboloo Glossary

Notes Receivable Asset

oboloo Glossary

Notes Receivable Asset

Notes Receivable Asset is an accounting term that refers to a written agreement between two parties, wherein one party, the debtor (the borrower), promises to pay a specified amount of money to the other party, the creditor (the lender). It typically includes a fixed interest rate, a repayment schedule and details of the particular loan. The notes receivable asset is an important part of any business’ financial records, as it provides valuable information on the debtors’ ability to repay loans in a timely manner. It’s also a useful tool for evaluating creditworthiness and assessing risk. With proper management and handling, notes receivable assets can be a great way for businesses to manage their finances, grow their businesses and create new opportunities.