OTHER NAMES
Loan note
IOU
Personal loan document
Promissory note for debt
Promissory note form
Note payable form
What is a Promissory Note?
A Promissory Note records a loan between two parties (it can be one or more businesses or private individuals). Promissory Notes create an unconditional promise to repay all debts and help protect the parties involved by providing a record of the transactions and their repayment terms.
When should I use a Promissory Note?
Use this Promissory Note when:
- you want to create a legally enforceable contract for repayment of a sum of money (ie a debt) between yourself (ie a creditor) and another party (ie a debtor)
- you know who owes the money (eg a private individual or a business)
- the loan amount and the amount to be repaid is certain and the time scale for repayment has a fixed start and end date