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HOW IT WORKS
How it works
A Promissory Note with Installment Payments specifies and documents the terms of a loan that will be paid back with consistent, equal, payments. Knowing exactly what the payments will be is a good idea, it can help you plan and budget. A Promissory Note with Installment Payments can help you document and organize the important information about your loan.
Loans can be structured in a number of ways, but a Promissory Note with Installment Payments helps keep things easy. Whether you're the lender or the borrower, you know exactly what each payment will be. Interest rates are easily calculated and all the terms and obligations are clearly spelled out. The exact same payments will be made until the loan is repaid, and the payment schedule is laid out. Loans don't have to be complicated, if you'd prefer to keep things simple then installments can be a great choice. As a lender, how your loans are designed is up to you, but it's still a good idea to have the details in writing. Using a Promissory Note with Installment Payments is one way to keep the loan process simple.
Other names for this document: Note Payable with Installment Payments, Installment Promissory Note
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This document is sometimes called an Installment Promissory Note.
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