Notes payable are often used instead of accounts payable.

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Notes payable are a type of debt that a company can use to borrow money from a lender. They typically have a fixed term and interest rate, and are recorded as a liability on the balance sheet. Accounts payable, on the other hand, are amounts owed to suppliers or vendors for goods or services that have already been received. While both represent forms of debt, notes payable are generally used for larger, more significant transactions or investments.

Notes Payable Are Often Used Instead of Accounts Payable