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Guides, tips, and state-specific information about promissory notes and lending transactions.
What to Do If You Inherit a Promissory Note
Here is what you need to know if you find yourself on the receiving end of an inherited promissory note...
Promissory Notes and the SBA: What Borrowers Need to Know
If you have applied for an SBA loan, you have probably encountered a stack of paperwork that felt overwhelming. Buried somewhere in that stack is a promissory note, and while it may look like just another form to sign, it is one of the most important documents in the entire transaction. Understanding what you are agreeing to before you sign can save you from surprises down the road...
Is a Promissory Note Legally Binding in California?
If you are planning to lend or borrow money in California and you want to put the agreement in writing, you are probably wondering whether a promissory note will actually hold up. The short answer is yes, a promissory note is legally binding in California, provided it meets certain requirements. Understanding what those requirements are and what can make a note unenforceable is worth knowing before any money changes hands....
Who Does a Promissory Note Actually Protect?
If you have ever been handed a promissory note to sign, your first instinct was probably that this document exists to protect the other person. The lender wants proof you owe them money. The paperwork is for their benefit. You are just signing something they need...
Promissory Notes as Investments: What Private Lenders Should Know
Here is what private lenders need to understand before treating a promissory note as an investment...
How a Promissory Note Protects You When a Borrower Defaults
You did something generous. You lent money to someone who needed it, put the terms in writing, and got a signature. Now they are not paying, not returning calls, and the repayment date has come and gone. It is a frustrating situation, but it is one where having a signed promissory note makes an enormous difference in what options you have available...
Why Borrowers Should Want a Promissory Note Too
When someone asks you to sign a promissory note before lending you money, it is easy to see it as something that benefits them. They are the ones with legal documentation of the debt. They are the ones who can take you to court if you do not pay. The note feels like it exists to protect the lender, full stop...
Can a Promissory Note Affect Your Credit Score?
When most people think about what affects their credit score, they think about credit cards, car loans, and mortgages. Promissory notes tend to fly under the radar. But depending on how a promissory note is structured and what happens with repayment, it can absolutely have an impact on your credit, or no impact at all. The difference comes down to...
What to Do When a Promissory Note Is Lost or Destroyed
You kept a copy somewhere safe. At least, you thought you did. Now you need it and it is gone. Maybe it was lost in a move, destroyed in a flood, or simply misplaced over the years. Whatever the reason, discovering that a promissory note is missing is a stressful situation, but it is not necessarily...
Promissory Notes and Taxes: What Lenders and Borrowers Need to Know
Most people think of promissory notes as a borrowing and lending tool, which they are. But what often gets overlooked is the tax side of the equation. Whether you are the one handing over money or the one receiving it, a promissory note can have real implications come tax time. Ignoring those implications does not make them go away...
Does a Promissory Note Need to Be Notarized?
It is one of the most common questions people have when putting a loan in writing: do you need to get a promissory note notarized before it is legally valid? The short answer is...
How to Collect on an Unpaid Promissory Note
You did everything right. You put the loan in writing, got it signed, and kept a copy. Now the due date has come and gone, and the borrower has gone quiet. So what do you do when someone does not pay back a promissory note?
What Is a Promissory Note? (And When You Actually Need One)
You've probably heard the term before, maybe in a legal drama or when a friend asked you to "put it in writing" before lending them money. But what exactly is a promissory note, and when do you actually need one?