What Are Short-Term Notes?
Short-term notes are debt obligations that are scheduled for repayment within a relatively short period of time. Notes of this type may be in the form of municipal bonds, personal loans, and even financial documents issued by state and national governments. There are several advantages associated with the use of short-term debt notes, with both the lender and the debtor usually benefiting from the transaction. Municipal bonds are one of the more common types of short-term notes. Bonds of this type are often issued as a means of securing funds today that can be used for some sort of civic project. The duration of the bond is usually determined by when the municipality expects to have the funds in hand to pay off the debt obligation. Normally, the repayment plan calls for issuing a maturity date that will occur shortly after the collection of taxes or some other form of revenue that the city expects to utilize in retiring the debt. In like manner, businesses sometimes make use of short-t
