A note receivable is said to be impaired if there is some uncertainty with regards to the collection of all or part of the note.

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An impaired note receivable refers to a situation where there is doubt whether the debtor can pay the full amount of the note, or if there is a possibility that the debtor might default on the payment. This may result from various factors such as financial instability, economic downturn or unforeseen events that could impact the debtor's ability to pay. In such cases, the note receivable's value may need to be adjusted accordingly to reflect the anticipated loss to the creditor.

A Note Receivable Is Said to Be Impaired If There