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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...
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...
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...