If a supplier accepts a note for all or part of the amount due, the company gets an extension of time for the payment.

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When a supplier accepts a note as payment, the company is given an extension of time to make the payment. The note usually has a specific maturity date, and the company is expected to pay the supplier by that date. This allows the company to better manage its cash flow and potentially avoid defaulting on the payment.

If a Supplier Accepts a Note for All or Part