Promissory Note

A promissory note is a legal document (more particularly, a financial document), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. A promissory note is a legal document (more particularly, a financial document), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.

Sample

Use a Promissory Note if: You plan to loan money to another person or business, and would like to formalize the agreement. You plan to loan money to another person or business, and would like to formalize the agreement. You’re looking to borrow money from a private party or a business, and you'd like to get all the terms in writing. You’re looking to borrow money from a private party or a business, and you'd like to get all the terms in writing. You’re involved in a loan that includes interest, and you wish to prepare an amortization table for both parties. You’re involved in a loan that includes interest, and you wish to prepare an amortization table for both parties. You need a written record determining the amount of a monthly loan payment. You need a written record determining the amount of a monthly loan payment. You've been asked to create a Promissory Note on behalf of a lender and borrower to outline the terms of a loan. You've been asked to create a Promissory Note on behalf of a lender and borrower to outline the terms of a loan.

Collecting on your Promissory Note: Collecting on your Promissory Note: Unfortunately, just because you create a promissory note doesn’t mean that the borrower will necessarily pay you back in a timely manner. If you’re having trouble getting paid, there are a few ways to move forward. Unfortunately, just because you create a promissory note doesn’t mean that the borrower will necessarily pay you back in a timely manner. If you’re having trouble getting paid, there are a few ways to move forward. Be polite: This might seem a little odd, but it shouldn’t. Generally, borrowers truly do want to repay their loans. Perhaps a borrower had an emergency surgery or needed a new transmission and can’t pay when promised. If you ask nicely for repayment and the borrower has a good reason they can’t quite make good when they agreed to, consider being a little lenient. Be polite: This might seem a little odd, but it shouldn’t. Generally, borrowers truly do want to repay their loans. Perhaps a borrower had an emergency surgery or needed a new transmission and can’t pay when promised. If you ask nicely for repayment and the borrower has a good reason they can’t quite make good when they agreed to, consider being a little lenient. Ask for payment in writing: if being nice doesn’t cut it, consider sending a past due notice. These notices create a paper trial in the unfortunate event your loan ends up in court and it will show your borrower you’re serious. Make sure you keep copies of these past due notices. Ask for payment in writing: if being nice doesn’t cut it, consider sending a past due notice. These notices create a paper trial in the unfortunate event your loan ends up in court and it will show your borrower you’re serious. Make sure you keep copies of these past due notices.