Notes Receivable Income is a form of income that businesses generate through the issuance of promissory notes to their customers. These promissory notes, or “notes receivable,” are essentially IOUs where a customer agrees to pay an overdue balance in exchange for goods or services. The business then records the money it will receive from the customer as a receivable asset on its balance sheet. Once the invoice is paid and the money is collected, the business can recognize the resulting income as Notes Receivable Income. This type of income is an important part of a company’s financial picture, providing businesses with the cash flow they need to stay afloat and grow.