If you are lending money to someone, or simply you are planning to borrow some money, signing the binding promissory note is a must. This is a legal document that outlines the terms and conditions between lender and borrower which is commonly written by lenders, banks, and attorneys. If you are planning to write a personal promissory note, you can make it legal when you write it properly. This is why you need the promissory note template.
On this page, we have the secured promissory note template that you can use for free. The template contains important stuff and section that you might miss out on. The free blank promissory note forms are also available. You can print it whenever you want and edit it too!
How To Write A Promissory Note Properly
If you want to use our template, you don’t need to make it from scratch because you just need to fill it with your details. But if you want to make it from the scratch, make sure you will follow the guide below:
- The date of the promissory note should be written at the top of the page
- Don’t forget to write down the amount of loan. You should write it in the numeric value and words form. It is similar to how you write the check.
- The next step is to describe the terms. You have to write a description that says about how the debt will be paid. State it clearly whether you want to be paid weekly, monthly or quarterly. You have to state clearly when the due date is by writing the day, date, month and year. Additionally, you also need to indicate the last day of the payment term.
- The next term to be written is whether the agreement is secured or unsecured. If the collateral is used by the borrower, then the agreement can be said a secured one. If so, describe it in the note. For example, if the borrower using the commercial property as collateral, then you have to state the details such as property address and also the building description.
- An agreement should also include the name of both parties. Make sure it is the legal and valid name, so the agreement can become valid.
- Another detail to include in the agreement is the complete mailing address and also the email address, just in case one of the addresses is invalid.
- Each party should print the agreement and then sign it with the complete name. Don’t forget also to mention the date of the promissory note and the place where the agreement is signed. Once the agreement has been signed, all of the obligations and rights will be valid and should be applied to both parties.
Tips In Writing The Promissory Note
Writing the agreement for a promissory note is not that complicated if you know what to write properly. If there is more than one borrower, each party should print and sign the promissory note. Otherwise, when there is a problem, the lender cannot pursue the party that didn’t sign the agreement which is invalid to this individual.
Promissory Note Sample Templates