Short-Term Notes Receivables are financial instruments created when a business agrees to borrow money from an investor for a fixed period of time, usually one year or less. These notes represent the lender’s claim on the borrower’s assets and provide the lender with assurance that their money will be paid back in full by the agreed upon date. As businesses increasingly turn to these instruments to obtain capital, it is important to understand how they work and how they affect your bottom line. Short-term notes receivables can help your business free up cash flow when you need it most, allowing you to invest in projects or take advantage of other opportunities while staying within budget.