Get helpful tips and info from our newsletter!view our current issue...
How it works
Answer simple questions and watch your doc auto-fill
Save, download, and print
Visit My Account and access it anytime
Promissory notes: What is it?
A promissory note is an agreement to pay back a loan. Secured means that the loan is guaranteed by security or collateral. Unsecured simply means that it is not. There a few different types of notes, each based on different structures of how and when the borrower will pay the lender.
So, what goes into a Promissory Notes:
Who it's coming from
Know if they're a business or individual and have their name and contact info ready.
Who it's going to
Have their name and contact info ready, too.
Which laws will govern it
Know which state's laws will apply if there's some kind of dispute.
What it's about
Have a summary of the general nature of the loan ready (e.g., the amount, the interest rate, if any).
Be clear about when this takes effect.