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Note Payable: Definition, Types, Example

By Kristi WaterworthUpdated May 20, 2025 at 2:15 PM

Key Points

  • A note payable is a formal, legally binding debt agreement in writing.
  • Includes details like repayment terms, interest rate, and maturity date.
  • Can be short-term (due within a year) or long-term (more than a year).

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