Long-term notes payable are similar to short-term interest-bearing notes payable except that the term of the notes exceeds one year. The use of notes payable in long-term debt financing is quite common.
A long-term note may be secured by a mortgage that pledges title to specific assets as security for a loan. Individuals widely use mortgage notes payable to purchase homes, and many small and some large companies use them to acquire plant assets.
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