what is payment in kind pik debt 
payment in kind also refers to a financial instrument that pays interest or dividends to its investors it s a type of mezzanine financing with characteristics indicative of debt and equities they tend to pay a relatively high rate of interest but are considered risky pik notes give the issuer a chance to delay making dividend payments in cash and return for the delay the issuing company typically agrees to offer a higher rate of return on the note 