Note Payable

A note payable is a debt of the company. It represents money that has to be repaid. It is secured by a written document.

If a borrower has more than 12 months to repay the loan it will be classified as a long term liability. If the borrower must repay the money he owes in less than a year, it will be listed under current liabilities.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/note-payable/