Prepare A Promissory Note To Clearly Define A Payment Schedule And Avoid Future Disputes

Promissory note forms are prepared to specify the terms used to lend and borrow money between two parties. The borrower signs a contract that makes the borrower liable to the lender for money borrowed.

Promissory notes should always be prepared between a borrower and a lender to avoid future misunderstandings concerning payment schedule, if there is any interest and to clearly state the money is a loan and not a gift.

It does not matter if either party is a friend, relative or co-worker. Without a promissory note legal form being prepared, there is too much to chance and relationships can be damaged when loaning money with just a verbal agreement or handshake.
Continue reading →