demand note
Callable debt instrument
A demand note is a loan that must be repaid whenever the lender requests it, rather than on a fixed date.
Unlike standard promissory notes with set maturity dates, a demand note gives the creditor the right to call in the debt at any time: The bank issued a demand note, putting the borrower on notice that repayment could be required without warning.
Written debt acknowledgment
- financial instrumentTradeable monetary contract
- loan agreementDocument governing borrowed funds
- written promiseFormal documented assurance
- legal documentFormally binding written record
One who takes temporarily
holder · payee · obligor · obligee · cosigner · guarantor · endorser · bank
Easily converted wealth
- working capitalAssets minus current liabilities
- bridge financingShort-term loan between transactions
- revolving creditReusable loan with limit
- credit linePre-approved borrowing limit
Subject to early redemption
- full paymentEntire amount owed, delivered
- principalChief school administrator
- interestAttention, stake, or fee
- balloon paymentLarge final loan installment
Not backed by collateral
- defaultPreset standard option
- creditworthinessAbility to repay debts
- credit riskPotential for borrower nonpayment
- unbackedWithout financial or moral support
signature loan · good faith · collection · nonpayment · delinquency · write-off · bad debt
IOU
Written debt acknowledgment
- financial instrumentTradeable monetary contract
- loan agreementDocument governing borrowed funds
- written promiseFormal documented assurance
borrower
One who takes temporarily
maker · holder · payee · obligor · obligee · cosigner · guarantor · endorser · bank · financial institution
liquid asset
Easily converted wealth
- working capitalAssets minus current liabilities
- bridge financingShort-term loan between transactions
- revolving creditReusable loan with limit
callable
Subject to early redemption
- full paymentEntire amount owed, delivered
- principalChief school administrator
- interestAttention, stake, or fee
unsecured
Not backed by collateral
- defaultPreset standard option
- creditworthinessAbility to repay debts
- credit riskPotential for borrower nonpayment
unbacked · signature loan · good faith · collection · nonpayment · delinquency · write-off · bad debt