Long Term Notes And Short Term Notes Various Advantages

1. Advantages of the long term notes and short term notes

3. If you want to make a healthy financial decision, you may consider of investing your money in financial avenue like long term notes and short term notes. • This is a great way to build up your wealth and improve your finances. You can invest in stocks and bonds, promissory notes, mutual funds and much more. • But both these types of financial avenue are really beneficial and companies and business organizations that need some operating capital may use or obtain a loan through any of the options of notes payable. • Now let’s take a look about Long term notes and Medium Term Notes

4. What is a Long term notes • Well, it is basically a written promise where you promise to pay a certain amount of money on a specific future date. However, there are two types of notes payable option available for you—short term and long term. Long term notes (LTN) are due after one year. • What is a Medium Term Notes • Medium term notes are those notes with maturity dates less than five year, typically they are less than one year. These generally have lower interest rates that other types of notes, making them low yield.

6. There are many different types of investments option to choose from • Treasury Notes • Treasury notes or T Notes are considered the most secure short term investments. There are notes that are for 6 month investments and notes that are for 60 months. The longer the term on the note the higher the interest that is offered. • Corporate Debt Bonds • Corporate debt bonds are a bit more risky but the return is usually a lot higher than with treasury notes. The term on these bonds will vary but usually range from 1-5 years

7. There are a lot of advantages of the long term notes and short term notes and here are those • The ownership interest – This note payable method offers you the benefit of ownership interest. That means you don’t have to give away any ownership interest to the lender. • The interest rate – This payable method has a fixed interest rate. So you can plan and budget your payment according to the interest beforehand. • Tax Deduction – When you take a loan in interest, it can be paid or can be deducted from your company’s income taxes. • Less Paperwork – Long term payable option doesn’t require much paperwork. Raising long-term debt capital does not require any paperwork to be filed with state and federal authorities.