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Guides, tips, and state-specific information about promissory notes and lending transactions.
Paying with a promissory note: using a note to buy something
When a buyer pays with a note instead of cash, the seller becomes a lender. Here's how to secure the note, why negotiability matters, and how payments are taxed.
Sarah Mccullen · September 25, 2026 at 1:16 PM ET 
When a balloon payment comes due and the borrower cannot pay
A missed balloon payment is a real default on the maturity date. Here are the lender's four options and what each one does to interest, timing, and paperwork.
James Stackpoole · September 24, 2026 at 1:33 PM ET 
Arbitration and jury-waiver clauses in a promissory note
Should your promissory note say where and how a dispute gets decided? Here's how arbitration, jury waivers, and forum clauses work, when courts enforce them, and sample language that holds up.
Sarah Mccullen · September 23, 2026 at 1:05 PM ET 
What happens if you miss a payment on a promissory note
A missed payment on a promissory note starts a process, and at almost every step you still have options. Here is what happens next, from the borrower's side of the table.
James Stackpoole · September 22, 2026 at 1:27 PM ET 
Can you sue on a promissory note in small claims court?
Small claims court can turn an unpaid promissory note into a judgment for under $100 in filing fees. Here's how the dollar limits, evidence, and interest math work.
Sarah Mccullen · September 21, 2026 at 1:12 PM ET 
Two lenders on one note: how co-lenders share the loan
Two people fund one loan and sign one note. It works until the borrower misses a payment and the lenders disagree about what to do next. A page of terms prevents most of that.
Sarah Mccullen · September 18, 2026 at 1:31 PM ET 
Oral modifications: why a side agreement may not stick
You tell the borrower to skip a month. Nobody writes it down. Whether that conversation binds either of you depends on a handful of rules worth knowing before the phone call.
James Stackpoole · September 17, 2026 at 12:29 PM ET 
Who services a promissory note: escrow, third-party servicers, and doing it yourself
Somebody has to collect the payments, split principal from interest, and keep the ledger straight. Here are the three ways private notes get serviced and what each one costs.
Sarah Mccullen · September 16, 2026 at 6:00 PM ET 
Co-makers and joint borrowers: When two people sign one note
Sign a note as a co-maker and you owe the whole balance, not half. Here's how joint and several liability, contribution, and co-signers really differ.
Sarah Mccullen · September 15, 2026 at 1:35 PM ET 
Using a promissory note for unpaid rent or a back-rent payment plan
When a tenant falls behind, a signed note turns the arrears into a fixed debt with a schedule. Here is what it must say, how it affects a pending eviction, and whether a notary is required.
Sarah Mccullen · September 14, 2026 at 12:37 PM ET 
Promissory note terms explained: principal, maturity, bearer, and more
A glossary for first-time lenders and borrowers, grouped by the job each word performs: the parties, the money, the timing, the security, and what happens if a payment does not arrive.
James Stackpoole · September 11, 2026 at 1:23 PM ET 
Promissory notes between an employer and an employee
Payroll advances, relocation packages, tuition reimbursement, and sign-on bonus clawbacks all work better as written notes. Here is how to structure one and stay inside the wage deduction rules.
James Stackpoole · September 10, 2026 at 1:55 PM ET 
What is promissory estoppel, and when does a promise become enforceable?
Promissory estoppel lets a court enforce a promise even when no contract exists. Here is what the doctrine requires, why judges apply it narrowly, and how long you have to bring the claim.
Sarah Mccullen · September 9, 2026 at 1:48 PM ET 
How to write off a promissory note that will never be repaid
A promissory note that goes bad can become a nonbusiness bad debt deduction, but only if the loan was real, the debt is totally worthless, and you can prove both. Here's what the IRS wants to see.
Sarah Mccullen · September 8, 2026 at 1:02 PM ET 
Electronic promissory notes: eNotes, transferable records, and how a digital note is held
A true eNote is more than a signed PDF. Here is how transferable records, control of the authoritative copy, and eVaults let a note move in digital form.
James Stackpoole · September 7, 2026 at 12:21 PM ET 
References on a promissory note: who a lender can ask and why
A reference is not a witness and not a co-signer. Here is what lenders use references for, why people at your address are usually excluded, and what a lender may do with that phone number.
James Stackpoole · September 4, 2026 at 12:12 PM ET 
Lending money to your own LLC: how to document a member loan
Putting your own cash into your LLC is easy. Getting it back, and keeping the IRS from calling it equity, takes a promissory note and a few habits. Here is how to paper a member loan the right way.
James Stackpoole · September 3, 2026 at 12:09 PM ET 
Using a promissory note to buy out a sibling's share of inherited property
One heir keeps the house and signs a note for the others' shares. How to set the price, secure the note against the property, and satisfy the IRS on interest.
James Stackpoole · September 2, 2026 at 1:22 PM ET 
Convertible promissory notes: How startup convertible notes actually work
A convertible note is a startup loan built to become equity, not to be repaid. Here's how caps, discounts, maturity dates, and conversion actually work.
Sarah Mccullen · September 1, 2026 at 1:33 PM ET 
Which state's law governs your promissory note?
When the lender and borrower live in different states, one sentence decides the usury ceiling and the limitations clock. Here is how governing-law clauses work and when a court ignores them.
Sarah Mccullen · August 31, 2026 at 1:22 PM ET 
How to collect on a promissory note when the borrower dies
The borrower's death does not erase the debt. Here is how a lender confirms the death, files a creditor's claim in probate, meets the strict deadlines, and handles collateral, insolvency, and co-signers.
James Stackpoole · August 28, 2026 at 1:58 PM ET 
What happens to a promissory note when the lender dies?
The loan does not disappear when the lender passes away. Here is who you pay next, what proof of authority to demand first, and how a forgiveness clause in the will actually works.
James Stackpoole · August 27, 2026 at 12:01 PM ET 
Wage garnishment and collecting a judgment on an unpaid note
You won the lawsuit on your note. Now comes the hard part. Here is how wage garnishment, bank levies, and liens turn a judgment into money.
James Stackpoole · August 26, 2026 at 1:58 PM ET 
Will a promissory note hold up in court? Proving and authenticating a note
A signed note does not enforce itself. Here is what it takes to win at trial: the original document, a proven signature, and answers to the defenses.
James Stackpoole · August 25, 2026 at 12:35 PM ET 
Personal guarantees: How a guarantor on a note differs from a co-signer
A guarantor backs someone else's debt and usually pays only after a default. Here is how a guaranty differs from co-signing, and what to read first.
James Stackpoole · August 24, 2026 at 2:33 PM ET 
Assigning a promissory note: How to transfer it to someone else
Transferring a note is about moving the right to collect. Here's how endorsement, written assignment, borrower notice, and the security interest fit together.
Sarah Mccullen · August 21, 2026 at 12:29 PM ET 
Is a promissory note legally binding in Virginia?
Virginia enforces a signed note with no notary and no filing. The two numbers that decide most disputes are the five-year deadline to sue and the 12 percent interest ceiling.
Sarah Mccullen · August 20, 2026 at 12:08 PM ET 
Simple vs Compound Interest on a Loan: Why the Difference Costs More Than You Think
Simple interest accrues on principal only. Compound interest earns interest on the interest. On a multi-year loan that gap turns into real money, and here's the math that proves it.
Sarah Mccullen · August 19, 2026 at 1:30 PM ET 
No State requires you to Notarize a Promissory Note. Here is the one time it really pays to
Notarization is optional in every single state. That does not mean it is pointless. There is one situation where the trip to a notary quietly saves you a fight later.
Sarah Mccullen · August 18, 2026 at 11:38 AM ET 
Using a Promissory Note in Owner Financing or a Land Contract
When a seller finances the buyer, a promissory note carries the promise and a mortgage secures it. A land contract works differently, holding title back until payoff. Here is how each protects you.
James Stackpoole · August 17, 2026 at 12:17 PM ET