Promissory Note Guides
105 articles in this category
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.