Promissory Note Guides
89 articles in this category
Promissory Notes in a Divorce: Documenting Money Between Spouses
One of you is keeping the house and buying the other out, but the cash will come over time rather than all at once. A promissory note turns that promise into an enforceable debt instead of a hope. Here is how spouses use notes to document money owed in a divorce and why a verbal agreement rarely survives the year.
What Is a Secured Promissory Note and When You Need Collateral
The difference between a secured and an unsecured note is the difference between a lender who can take something back and one who can only sue and hope. Collateral changes everything about your odds of getting paid, and knowing when to require it is the core lender skill.
How to Sell a Promissory Note You Hold (and What It's Worth)
If you're a private lender holding a note and you'd rather have cash now than payments over time, you can sell it to a note buyer at a discount. Here's exactly what makes a note sellable, how buyers price it, and the paperwork that transfers your rights cleanly.
Can Your Spouse or a Family Member Witness a Promissory Note?
You are about to sign a loan to your cousin and someone asks who should witness it, so you glance at your spouse standing in the kitchen. Before you grab the nearest person, it helps to know whether a witness is even required and why a neutral one is worth a little extra effort. Here is the practical answer.
Balloon Payments on a Promissory Note: How They Work
A balloon payment keeps the monthly payments low by leaving a large lump sum due at the end. It can make a loan affordable month to month, but that final payment has ended more than a few borrowers who never planned for how they would actually cover it.
Using a Promissory Note to Advance Money Against an Inheritance
Your daughter needs help now, and you would rather give it to her while you are alive than make her wait for the estate to settle. A promissory note lets you do that and still keep the eventual split fair among all your children. Here is how to document an advance against an inheritance so it is treated as a loan, not a gift, and so no one fights about it later.
Promissory Note vs. Loan Agreement: Which Do You Need?
People use the two terms as if they mean the same thing, then pick the wrong document for the deal. A promissory note is a borrower one-sided promise to pay. A loan agreement is a full two-sided contract. The right choice depends on how complex the deal is and how much you need to spell out.
What Happens to a Promissory Note in Bankruptcy?
When someone who owes you on a promissory note files for bankruptcy, your loan does not simply vanish, but your odds of collecting hinge on one thing most private lenders never thought about: whether the note was secured. Unsecured lenders are often last in line and may get nothing.
How to Write a Promissory Note for a Car Loan Between Individuals
Selling a car to someone who pays you over time turns you into a lender, and a handshake is a terrible loan. A promissory note spells out the payments, the interest, and what happens if they stop paying, while the title question decides whether you actually get paid.
Installment vs. Demand Promissory Note: How to Choose
Two promissory notes can lend the same amount at the same rate and still work in completely different ways, because the repayment structure is where the real difference lives. An installment note sets a fixed schedule. A demand note lets the lender call the loan whenever they want. Choosing between them shapes the entire loan.
What Interest Rate Can You Legally Charge? Usury Limits Explained
Charging interest on a loan is legal and often sensible, but every state sets a ceiling, and crossing it can do far more than void the interest. In some states it costs you the right to collect the loan at all. Here is how usury limits work and how to set a rate that actually holds up.
Secured vs. Unsecured Promissory Note: Which One Do You Need?
Every promissory note answers one question before any other: if the borrower stops paying, what can the lender actually do about it? The answer depends almost entirely on whether the note is secured or unsecured, and a lot of lenders make that choice without realizing what they are giving up.