Notes Payable Definition
A note payable is a legal document that represents a debt owed by one party to another. The note will typically specify the amount of money owed, the interest rate charged, and the date by which the debt must be repaid.
Most often, notes payable are used when one business owes money to another business. For example, a company may take out a loan from a bank and agree to repay it over time with interest. The company would then issue a note payable to the bank for the amount of the loan.
However, notes payable can also be used in other situations, such as when an individual borrows money from a friend or family member. In this case, the borrower would sign a promissory note specifying the terms of repayment.
If you are owed money by someone and they have not paid you back, you may want to consider taking out a small claim against them in court. This could help you recover the money you are owed, plus any interest and fees that may be due.
