Notes Payable

Notes Payable are obligations of a company that are in the form of a written promissory note.  Notes payable appear on the balance sheet as current liabilities, and are usually classified as one of the following:

• Maturing Long Term Debt - The portion of the long term debt that is maturing within the next fiscal period.
• Trade Notes - The unpaid amount of promissory notes, which are owed to suppliers of goods and services.
• Short Term Loan Notes - These are short term promissory notes, which are payable to financial institutions such as banks, and are generally related to cash loans.