Notes Payable Liability Definition
A note payable liability is defined as a debt that is evidenced by a promissory note. A promissory note is a written instrument that obligates the issuer to pay a certain sum of money to the holder on demand or at a specified future date. Notes payable liabilities are typically issued by businesses in order to raise capital. The terms of a note payable liability can vary depending on the agreement between the issuer and the holder, but typically involve periodic interest payments and a maturity date.
