one important component of a note is its interest rate if you are issuing a note rec 691609

One important component of a note is its interest rate. If you are issuing a note receivable, you sure would like to have it at a higher rate, thereby earning more interest payment. On the contrary, if you are writing a note payable, you would want to negotiate the note at the lowest rate possible so that you will not need to pay that much interest. Interest rates go through cycles, with the highest prime rate recorded at 20.50 percent in August 1981 in the United States. In the early 2000s, interest rates still were relatively low, dropping from 9.0 percent to as low as 4.0 percent. However, around 2005, interest rates in the United States began inching higher and higher. The lowest prime rate was recorded at 4.0 percent in 2003 and 2004. In June 2006, the prime rate broke 8.0 percent, went up to 8.25 percent in July and stayed at the same rate and dropped back to 7.50 percent effective October 31, 2007. So shop before you sign any note or borrow any funds for your operations.