A private document by which an individual undertakes to pay another, or their order, a certain amount of money on a certain date. Promissory notes are commonly used in corporate, banking, and treasury contexts. Corporate promissory notes are short-term debt issued by an industrial or commercial company without a bank guarantee. They are offered to the general public through open subscription and are transferable. They are used by solvent companies with a good risk rating. In contrast, a treasury promissory note, in the case of Spain, was a state debt with a maturity of less than eighteen months, issued at a discount and to the bearer. It was transferable without the need for a notary public and served as a refuge for black money, as it was not mandatory to indicate the name of the purchaser. It has been replaced by the treasury bill, which is a fixed-income security issued by the government for six or twelve months, in the short term, to finance the state’s deficit. Treasury bills are part of a country’s public treasury issuances to support its financial operations. They are a very important financial tool for governments and an excellent way to invest due to the low risks they carry.
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