Notes Receivable is a type of asset that records amounts owed to a business by its customers or other parties. It’s an agreement between two parties in which one promises to pay the other a certain sum of money at a specified time or on demand. The party that makes the promise to pay is said to have issued a “note,” and since it’s an asset, the note is considered part of the company’s overall financial picture. Put simply, Notes Receivable is a form of debt that’s expected to be paid back in due course – with interest.