Notes payable are either spontaneous secured or spontaneous unsecured financing and result from the normal operations of a firm.

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Notes payable can be either spontaneous or non-spontaneous, secured or unsecured. Spontaneous notes payable result from the normal operations of a firm, while non-spontaneous notes payable result from borrowing for specific purposes such as purchasing equipment or expanding the business.

Notes Payable Are Either Spontaneous Secured or Spontaneous Unsecured Financing