Promissory Notes

Despite your best efforts, invoices sometimes don't get paid in a timely manner. When this happens, one option you can extend to late paying clients is the promissory note. A promissory note is a formal, legal promise that your client issues to you stating they will pay you a sum of money under specific terms. Often called a "note receivable" or even simply, a "note," a promissory note can be an effective tool for AR to get their money (possibly with interest!)