A promissory note is basically just a piece of paper saying "I promise to pay you this amount at this time". It might be secured or unsecured, and it might have an interest charge but it doesn't have to.
They are actually used relatively commonly in big business, because typically you'll place an order of materials or services, promising to pay at some amount of time after delivery. This means that despite not being a bank, the customer is indebted to the vendor for some period of time between delivery and payment, and the customer has promised to pay within a certain period of time (usually between 30 and 90 days)
They are actually used relatively commonly in big business, because typically you'll place an order of materials or services, promising to pay at some amount of time after delivery. This means that despite not being a bank, the customer is indebted to the vendor for some period of time between delivery and payment, and the customer has promised to pay within a certain period of time (usually between 30 and 90 days)
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