Free Note Payable

Whether you're borrowing money or providing a loan to someone else, a Note Payable is a great way to establish a record of the transaction and make sure that repayment terms, for example, are clear and fair. With a Note Payable, you can outline all of the terms and conditions of the loan, so be sure to get it done before money changes hands.

You can use a Note Payable to loan or borrow money, with or without interest. The Note lays out all the terms, rights and obligations of a loan, from the amount of the loan itself to the repayment plan. Your Note Payable should include information like: the amount and date of the loan; the names of the lender and borrower; the interest rate on the loan and its beginning date; how the loan will be paid (in installments of principal and interest, in installments of interest only, in one lump sum on a specific date, or due on demand); payment information such as number of payments, balloon amount, and frequency of installments; how you'll secure the promissory note; whether the lender can sell or transfer the loan to another party; and more. You may also want to include an amortization schedule to determine the proportion of interest to principal per payment.

Use the Note Payable document if:

• 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 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've been asked to create a Promissory Note on behalf of a lender and borrower to outline the terms of a loan.

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