Question

What is the main difference between notes payable and bonds payable?

Short answer

Note payable is a written promissory note representing a loan from a bank or financial institution. In contrast, a bond is a debt issued to the public and considered security.

Step-by-step solution

Meaning of Non-Current Liabilities

Non-current liabilities are those liabilities that are payables after one or more years. These are also known as long-term liabilities. Notes payable and Bonds are an example of non-current liability

Difference between notes payable and bonds payable

Basis	Notes payable	Bond payable
Meaning	Notes payable refers to an agreement in which the borrower borrows cash from a lender and promises to pay it on a particular date and with pre-specified interest rates.	A bond is a written agreement under which a promise is made to pay a specified sum of money on a fixed future date as specified, and to make periodic interest payments at a specified interest rate until the principal sum is paid.
Nature	A note payable however could be individual or a single lender such as bank lending money to your business thatcouldbe a note.	Bonds payable have a specific interest rate and coupons that could be attached to them depending upon the type of bond.