Different Types of Business Receivables

1. Accounts receivable are amounts customers owe an organization for normal credit purchases - these are current accounts. Accounts receivable stem from the sale of goods and services. These receivables make up the most significant type of claim held by an organization.
2. Notes receivable are amounts owed to the company by those whom have signed formal promissory notes in acknowledgment of a debt. Normally extending for 60-90 days or longer, customers are charged interest on notes receivable.
3. Trade receivables are accounts receivable and notes receivable resulting from company sales.
4. Non-trade receivables are amounts due for payment to an entity other than its normal customer invoices for products shipped as well as services performed.