What Is a Promissory Note Form?
A promissory note (not to be confused with a loan agreement) is a legal document which contains a promise to pay a specified sum of money to a specified person at a specified time.
To make it simple, a promissory note is a debt instrument that allows companies or individuals to obtain financing from a source other than a bank. A standard promissory note is generally held by the party to whom the money is owed.
Professional Promissory Note Example
Here is a sample promissory note that sets out the amount and terms of the loan:
- At the top of the form, you are required to provide your and the borrower’s personal information, including the full names and contact addresses.
- Below this, you should specify the amount of the loan and the required date for the final loan repayment.
- At the bottom of the completed form, you and the borrower should sign the form to validate it. You can add a digital signature to your PDF, otherwise you can sign a hard copy of the form.
Tips for Making a Promissory Note in the PDF Format
Calculating the Amount of the Debt
First, you should calculate the amount of money that the borrower owes you. It may include not only the amount of money owed but also any additional interest and penalty payments. Consider whether you want to receive the payment in US dollars or some other currency.
Talking with the Borrower about Repayment Options
Before drafting the promissory note, discuss the terms of the loan with your borrower. You can give them the option to pay off the debt in instalments. Alternatively, you can opt to have the loan repaid in full. Additionally, you should discuss and set a date for the final payment which is acceptable to both of you.
Creating a Promissory Note Document
How to make a promissory note in a few clicks? Download Movavi PDF Editor with its free printable form templates. Select a promissory note template in PDF format. Enter all the required information in the appropriate fields on the blank form. The basic promissory note must include your and the borrower’s detailed personal information, the specified amount of the loan, and the signatures of the parties involved. Optionally, this the document can also include a short description of the purpose of the loan – what the money will be used for.