What is a Time Note?

Article Details
  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 29 August 2019
  • Copyright Protected:
    Conjecture Corporation
  • Print this Article
Free Widgets for your Site/Blog
Black rhinos and white rhinos are actually the same color: gray. The main difference between them is lip shape.  more...

September 20 ,  1873 :  The Panic of 1873 caused the New York Stock Exchange (NYSE) to shut down.  more...

Time notes are financial commitments that include a deadline for the date that repayment in full will be completed. The repayment process may include a series of payments that take place between the point of issue and the point of termination for the note, or be structured to include a balloon payment for the full amount on a specific date. A time note is often utilized in loan situations that involve two individuals rather than the inclusion of a lending institution or finance company.

The most common type of time note is known as a promissory note. Promissory notes are simply agreements between a lender and a borrower. The terms of this form of time note may include some repayment of interest along with the principle, although that is not an essential. However, a time note will always include a firm date for the balance due to be repaid.

A time note generally does not get into many specifics or establish some sort of schedule for repayment, other than identifying a specific repayment date that the borrower must meet. This means that the borrower is often responsible for determining whether to establish a series of repayments that will ensure the balance is repaid by that date, or make arrangements to make one complete payment on or prior to the repayment date. In short, the structure for repayment is flexible.


Use of a time note is very common among persons who do not wish to go through the formality of borrowing money through a lending institution. The time note may be utilized for everything from assisting an acquaintance to secure a vehicle to funding a college education. However, it is important to note that laws governing a time note vary from one nation to another. Persons who choose to make us of this lending model should investigate their rights and responsibilities under the regulations set forth in the country of origin.


You might also Like


Discuss this Article

Post your comments

Post Anonymously


forgot password?