A promissory note is basically a contractual agreement between two or more parties. These documents are not often utilized by financial institutions, but by average people. In order for a promissory note to be effective, it must contain the important details of the agreement or contract. Once you have met with the borrower and drawn up an agreement, it will be time to take advantage of the promissory note template.
Self-Explanatory Format
The great thing about the document template is it is laid out is a simple and self-explanatory format. You will notice the texts that are surrounded by brackets. These details are editable, so all you need to do is erase the texts on the document and replace it with your personal information. The promissory note will have varying lengths, depending on how much content is in the actual agreement. In order for the document to secure your financial interests, it will need to contain the payment schedule, due date, principal sum, number of installments, and the date of the first and last payment.
Print And Distribute
If you are conducting this business deal in a face-to-face manner, you will need to print out several copies of the document. The borrower will definitely want a copy for his/her own records. If this business deal is being conducted through the Internet, you can email the copy to the borrower.
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