The terms of payment for a note receivable are generally longer than that of an account receivable.

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A note receivable is a written promise to pay a specific amount of money on a specific date or on demand. The terms of payment for a note receivable are typically longer than that of an account receivable, which is a debt owed by a customer for goods or services that have been delivered but not yet paid for. The longer terms of a note receivable may allow the borrower more time to obtain the funds needed to repay the debt, but it also increases the risk of non-payment.

The Terms of Payment for a Note Receivable Are Generally