A note receivable is often called apromissory note. This instrument is a written promise to pay at a definite time. The party making the promise is the maker, the party receiving the payment will be the payee. The difference between a promissory note and an accounts receivable is that promissory notes often have longer terms and the payee also receives interest on the note. What type of business transactions would normally use promissory notes? I will give you a hint, look around your home for the answer!