Notes Payable and Notes Receivable are both legal documents used in business that are very similar, yet operate in different ways. A Note Payable is created when a business lends money to another party. It includes: the amount of money being borrowed, the interest rate associated with the loan, and the due date of repayment. On the other hand, Notes Receivable are made when one company (the lender) receives an amount of money from another party (the borrower). The document records the terms brought forth by both parties, including: the amount owed, any applicable interest rates, and the due date of payment to the lender. Both forms impact the books of each respective party involved.