Promissory Notes

Who needs a promissory note?

Maybe you are loaning your child money to pay for school or buy a house. Maybe you are helping a friend pay off debts or buy a car. In any of these cases, you can benefit from writing a legal promissory note, a document that puts the loan in writing.

How a promissory note works

A promissory note describes the loan amount and due date on the loan. It can also spell out interest payments and give you the right to reclaim any collateral such as a car or house or other take other measures if the loan isn’t paid.

Why use a promissory note?

When the lender and borrower sign a legal form, it makes the arrangement official. Promissory notes provide evidence if you end up going to court.