Accounts Payable and Notes Payable are two different financial obligations that businesses must manage. Accounts Payable is the amount of money a business owes to its suppliers for goods and services purchased on credit. This is a short-term debt that must be paid within a certain period of time, usually within 30 days. Notes Payable, on the other hand, is a long-term debt that is usually secured by collateral and must be paid back over a longer period of time, usually over several years. Notes Payable can also be referred to as a loan, bond, or promissory note. Both Accounts Payable and Notes Payable are liabilities on a company’s balance sheet and must be managed in order to maintain a healthy financial position.
