For a business, what are the advantages of a notes receivable in comparison to an account receivable?

Question

note receivable - your right in a promissory note in which the maker promises to pay a certain amount of money at a certain time

Answer 1

The company receives interest on the principle (not on an A/R). A note is usually for a larger amount than an A/R, the company is taking in more money. The company has a steady stream of payments coming in which gives the company a more quality Working Capital position, and this can be used as collateral.