What is the Definition of a Cash Note?

by JD Thornton; Updated September 26, 2017
Cheque from IStock Closeup

The legal definition of a cash note, more commonly called a promissory note or cash flow note, is a written, signed, and unconditional promise to pay a certain amount of money on demand at a specified time.

Using a Note

A cash flow or promissory note is often used as a way to borrow money or take out a loan. It acts as documentation that the loan will be repaid. It is often written as a contract, spelling out terms of repayment, parties involved, and repayment dates. Cash flow notes are also considered tradable assets, meaning that the debts they represent can be sold for less than face value to third parties in order to obtain immediate funds.

About the Author

JD Thornton has recently achieved an advanced Bachelor's degree in business analysis from Bellevue University, and is returning to complete her Master's in organizational performance.

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