We often borrow money or get loans from persons or banks, in both cases a written promise or promissory note is advised to avoid any complications in future. Financial matters often need to raise funds for new ventures or to cope with financial crises in business. Both conditions demand some written agreement with persons or organizations sponsoring you in regard of loan. Promissory note must be prepared by attorney as it is a legal document between two parties that can be pleaded in court for any further assistance in case of any nonpayment of credit. Bank notes are also refer as promissory notes as they set conditions for financial assistance from bank and returning of this mortgage and bind the person under some conditions. In following conditions a person may need to have a promissory note.
Here is preview of a sample Promissory Note Template,
An entrepreneur discussing his/ her ideas of new ventures with friends or family members may be offered for financial support from them or may be in need of monetary assistance form them. For sake of getting supported economically it is needed to write a promissory note that saves both parties sharing in business. Promissory note must contain the name of sponsor and creditor along with the principle amount provided by sponsor and interest rate that will be applicable at the time of return. Maturity period should also be defined; it should take account of the way of payment of loan on which both lender and borrower are agreed.
Getting financial support throughout the business life is a key process. Any businessman might be willing to raise finance other than banks like from friends and other acquaintances to avoid being pledged by banks. At that level they have to write a promissory note to make a written agreement for taking finance for their business. In case of dealing in a real estate deal both parties write a promissory note to enter in a sale purchase deed. It includes the terms and conditions for the transaction in the deal and suggestions that what will happen in case of nonpayment in time. A student can also borrow money for education and write a promissory note for the purpose.
Occasionally if a person is willing to participate in a business as sleeping partner he / she can write a promissory note along with a partnership deed. By promissory note he/she can get a secure position as a sleeping partner in an industry. As it a debit obligation so along with other terms and conditions one can include terms of his/ her convenience for further dealing and best assistance in due course of cooperation. Promissory note must be signed by both parties with two reliable witnesses. Addresses of parties and witnesses must be clearly mentioned. If there is any compulsion it must be clearly and prominently stated in promissory note. In case someone is willing to endow with a financial help to a poor person to make him able to earn sufficiently, he may lend him money with a loose term promissory note to make him bound for the productive use of that money.
Here is download link for this Promissory Note Template,