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While a promissory note can provide the simplest mechanism to secure a debt, care should be taken if the note relates to a loan for the purchase or improvement of real estate. These trusts are vehichles the originator uses to remove the assets from thier balance sheet, and these trusts are the entities that coordinate the funds coming in from the recievables and the funds leaving to pay the investors. In the context of a promissory note, the promisee is the person who is entitled to receive payment for the loan or obligation secured by the note. The current ratio will disclose balance sheet changes that net working capital if the result is percent or greater, your average inventory is not too high.

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