How to Write a Promissory Note

Video Transcript

"You've loaned money to someone and now you want a promissory note. Hi, I'm Robert Todd and I'm here to address "how do I write a promissory note"? Well, there are many forms for promissory notes that can be found on the Internet but if you don't want to go through that extent, you can, basically, write the promissory note yourself. What you want to do is you want to be sure that the date that the money is borrowed is indicated, prominently. You want to be sure to identify the borrower, you want to be sure and identify the terms of the loan, whether or not it can be paid off in regular installments or whether it can be paid in advance, and if so, is there a penalty or is there some type of bonus for paying it off before the term is due and you want to be sure to address what interest rate is being charged and how much interest is being charged so that can easily be calculated. Finally, you want to make absolutely sure that the borrower signs the promissory note, acknowledging that they owe you the money. I'm Robert Todd and thank you for watching."