Notes Receivable
These are notes that a company accepts from their customers. These customers purchase things on account. Each time they purchase something from the company it is just charged to their account. Eventually they will pay off their account or it will be recorded as an outstanding note.
Notes Payable
These are notes that are given to the customers. These can also be given by the bank as a promise to pay back the loan. Notes payable usually come with a set interest. The longer it takes to pay the money back the more interest is tacked on to the total amount owed.
