[{"data":1,"prerenderedAt":475},["ShallowReactive",2],{"document-checklist-items-to-consider-for-drafting-a-promissory-note-D427":3},{"document":4,"label":26,"preview":11,"thumb":27,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":28,"breadcrumb":32,"related":40,"customDescModule":181,"customdescription":6,"mdFm":182,"mdProseHtml":474},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":25},"CHECKLIST items to consider for drafting a promissory note Date of execution Place of execution Time of performance Place of performance Indication of consideration Identification of maker(s) Name or other identification of payee Unconditional promise of payment ",null,"Checklist Items to Consider for Drafting a Promissory Note","1",45,"doc","https://templates.business-in-a-box.com/imgs/1000px/checklist_items-to-consider-for-drafting-a-promissory-note-D427.png","https://templates.business-in-a-box.com/imgs/250px/427.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#427.xml",{"title":6,"description":6},[16,19,22],{"label":17,"url":18},"Finance & Accounting","/templates/finance-accounting/",{"label":20,"url":21},"Business Loans","/templates/business-loan/",{"label":23,"url":24},"Promissory Notes","/templates/promisory-note/","checklist items to consider for drafting a promissory note","Checklist Items to Consider for Drafting a Promissory Note Template","https://templates.business-in-a-box.com/imgs/400px/427.png",[29,16,19,22],{"label":30,"url":31},"Templates","/templates/",[33,34,37],{"label":30,"url":31},{"label":35,"url":36},"Legal Agreements","/templates/business-legal-agreements/",{"label":38,"url":39},"Loans & Promissory Notes","/templates/loans-and-promissory-notes/",[41,45,49,53,57,61,65,69,73,77,81,85,89,105,120,134,149,166],{"label":42,"url":43,"thumb":44,"extension":10},"Promissory Note","/template/promissory-note-D434","https://templates.business-in-a-box.com/imgs/250px/434.png",{"label":46,"url":47,"thumb":48,"extension":10},"Promissory Note Line of Credit","/template/promissory-note-line-of-credit-D435","https://templates.business-in-a-box.com/imgs/250px/435.png",{"label":50,"url":51,"thumb":52,"extension":10},"Collection Letter_Following Promissory Note","/template/collection-letter_following-promissory-note-D196","https://templates.business-in-a-box.com/imgs/250px/196.png",{"label":54,"url":55,"thumb":56,"extension":10},"Demand to Pay Promissory Note","/template/demand-to-pay-promissory-note-D207","https://templates.business-in-a-box.com/imgs/250px/207.png",{"label":58,"url":59,"thumb":60,"extension":10},"Promissory Note With Acknowledgment","/template/promissory-note-with-acknowledgment-D437","https://templates.business-in-a-box.com/imgs/250px/437.png",{"label":62,"url":63,"thumb":64,"extension":10},"Guarantee of Claim Promissory Note","/template/guarantee-of-claim-promissory-note-D884","https://templates.business-in-a-box.com/imgs/250px/884.png",{"label":66,"url":67,"thumb":68,"extension":10},"Letter of Default on Promissory Note","/template/letter-of-default-on-promissory-note-D431","https://templates.business-in-a-box.com/imgs/250px/431.png",{"label":70,"url":71,"thumb":72,"extension":10},"Movable Hypothec Promissory Note","/template/movable-hypothec-promissory-note-D432","https://templates.business-in-a-box.com/imgs/250px/432.png",{"label":74,"url":75,"thumb":76,"extension":10},"Promissory Note With Acceleration Clause","/template/promissory-note-with-acceleration-clause-D436","https://templates.business-in-a-box.com/imgs/250px/436.png",{"label":78,"url":79,"thumb":80,"extension":10},"Security Agreement and Promissory Note","/template/security-agreement-and-promissory-note-D912","https://templates.business-in-a-box.com/imgs/250px/912.png",{"label":82,"url":83,"thumb":84,"extension":10},"Checklist Drafting Merchandising License Agreements","/template/checklist-drafting-merchandising-license-agreements-D5217","https://templates.business-in-a-box.com/imgs/250px/5217.png",{"label":86,"url":87,"thumb":88,"extension":10},"Checklist Drafting Joint Promotion Agreements","/template/checklist-drafting-joint-promotion-agreements-D5216","https://templates.business-in-a-box.com/imgs/250px/5216.png",{"description":90,"descriptionCustom":6,"label":91,"pages":92,"size":93,"extension":10,"preview":94,"thumb":95,"svgFrame":96,"seoMetadata":97,"parents":99,"keywords":103,"url":104},"SERVICE AGREEMENT This SERVICE AGREEMENT (\"Agreement\") is effective [DATE], BETWEEN: [COMPANY NAME] (the \"Contractor\"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Customer\"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] (The Contractor and the Customer shall be individually referred to as a \"Party\" and collectively referred to as the \"Parties\", as the context may require). WHEREAS A. Contractor has experience and expertise in [DESCRIBE EXPERIENCE AND SERVICE]. B. Customer desires to have Contractor provide services for them. C. Contractor desires to provide services to Customer on the terms and conditions set forth herein (the \"Services\"). NOW THEREFORE, in consideration of the above recitals, the representations, warranties, and agreements contained in this Agreement and for other good and valuable consideration, the receipt and adequacy of which are now acknowledged, the Parties agree as follows: SERVICES PROVIDED Beginning on upon agreement to this contract, [CONTRACTOR] will provide to [CUSTOMER] the following service (collectively, the /Services\"): Description of the project: [DESCRIBE THE SERVICE REQUIRED]. SCOPE OF WORK Contractor agrees to provide Services pursuant to the Scope of Work set forth in Exhibit A attached hereto (the \"Scope of Work\"). TERM Unless both parties mutually agree on an extension, this contract will automatically terminate on [SPECIFY]. PERFORMANCE The parties agree to do everything possible to ensure that the terms of this Agreement take effect. PAYMENT FOR SERVICES In exchange for the Services rendered, a payment of [SPECIFY] will be made to the Contractor upon completion of the scheduled Services described in this Contract. If an invoice is not paid on the due date, interest will be added to the current balance. These amounts shall be payable, and the Customer shall pay all overdue amounts at the lesser of [SPECIFY] per cent per annum or the maximum percentage permitted by applicable law. Or Customer will pay Contractor as follows: [SPECIFY]. DELIVERY OF SERVICES The Contractor will exercise due diligence in the provision of services. However, the Customer acknowledges that the indicated delivery times and other payment milestones listed in Scope of Work are estimates and do not constitute final delivery dates. SECURITY The Contractor must make reasonable security arrangement to protect Material from unauthorized access, collection, use, alteration or disposal. OWNERSHIP RIGHT The Customer shall hold the copyright for the agreed version of the Services as delivered, and the Customer's copyright notice may be displayed in the final version. All works, ideas, discoveries, inventions, patents, products or other information that may be protected by copyright (collectively, the \"Work Product\" developed in whole or in part by the Contractor in connection with the Services, shall be the exclusive property of the Customer. Upon request, the Contractor shall execute all documents necessary to confirm or perfect the exclusive ownership of the Customer's \"Work Product\". The Contractor retains exclusive rights to pre-existing materials used in the Customer's projects. The Customer shall not have the right to reuse, resell or otherwise transfer material belonging to the contractor or third parties. The Contractor reserves the right to use the finished public product as an example of a product. RETURN OF PROPERTY Upon the expiry or termination of this Agreement, the Contractor will return to the Customer any property, documentation, records or Confidential Information which is the property of the Customer. COMPENSATION For all services rendered by the Contractor under this Agreement, the Customer shall indemnify the Contractor. In the event that the Customer fails to make any of the payments mentioned, the Contractor shall have the right, but shall not be obliged, to exercise any of the following remedies: ","Service Agreement","6",513,"https://templates.business-in-a-box.com/imgs/1000px/service-agreement-D12711.png","https://templates.business-in-a-box.com/imgs/250px/12711.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12711.xml",{"title":98,"description":6},"service agreement",[100,102],{"label":35,"url":101},"business-legal-agreements",{"label":35,"url":101},"loan agreement","/template/loan-agreement-D12711",{"description":106,"descriptionCustom":6,"label":107,"pages":108,"size":93,"extension":10,"preview":109,"thumb":110,"svgFrame":111,"seoMetadata":112,"parents":113,"keywords":103,"url":119},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":103,"description":6},[114,116,118],{"label":17,"url":115},"finance-accounting",{"label":20,"url":117},"business-loan",{"label":20,"url":117},"/template/loan-agreement-D417",{"description":121,"descriptionCustom":6,"label":122,"pages":123,"size":124,"extension":10,"preview":125,"thumb":126,"svgFrame":127,"seoMetadata":128,"parents":129,"keywords":132,"url":133},"SECURITY AGREEMENT This Security Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the \" Secured Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Debtor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note (\"Secured Party\"), [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount]. Each such Installment is payable on the [day] of each month, commencing on [date]. Recitals WHEREAS, the Secured Party has extended to the Debtor a certain loan as evidenced by a certain promissory note, in the original principal amount equal to [amount] dated on even date herewith (the \"Note\"); and WHEREAS, the Debtor wishes to grant a first priority security interest in and to all of the Debtor's tangible and intangible personal property pursuant to the terms hereof; NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows: DEFINITIONS The following terms shall have the meanings herein specified unless the context otherwise requires. Such definitions shall be equally applicable to the singular and plural forms of the terms defined: \"Contracts\" shall mean all contracts between the Debtor and one or more additional parties. \"Contract Rights\" shall mean all rights of the Debtor (including, without limitation, all rights to payment) under each Contract. \"Copyrights\" shall mean any [country] copyright to which the Debtor now or hereafter has title, as well as any application for a [country] copyright hereafter made by the Debtor. \"Equipment\" shall mean any \"equipment,\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by the Debtor and any and all additions, substitutions and replacements of, any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. \"General Intangibles\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Goods\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Inventory\" shall mean all raw materials, workinprocess, and finished inventory of the Debtor of every type or description and all documents of title covering such inventory, and shall specifically include all \"inventory\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by the Debtor. \"Marks\" shall mean any trademarks and service marks now held or hereafter acquired by the Debtor, which are registered in the [country] Patent and Trademark Office, as well as any unregistered marks used by the Debtor in the [COUNTRY] and trade dress, including logos and/or designs, in connection with which any of these registered or unregistered marks are used. \"Obligations\" shall mean: (i) all indebtedness, obligations and liabilities (including, without limitation, guarantees and other contingent liabilities) of the Debtor to the Secured Party, including but not limited to the Note; (ii) any and all sums advanced by the Secured Party in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Debtor referred to in clause (i), after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys' fees and court costs. \"Patents\" shall mean any [country] patent to which the Debtor now or hereafter has title, as well as any application for a [country] patent now or hereafter made by Debtor. \"Proceeds\" shall have the meaning assigned that term under the [law or code] as in effect in the State of [state/province] on the date hereof or under other relevant law and, in any event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Secured Party or the Debtor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. \"Receivables\" shall mean any \"account\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [STATE/PROVINCE], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all of the Debtor's rights to payment for goods sold or leased or services performed by the Debtor, whether now in existence or arising from time to time hereafter, including, without limitation, rights evidenced by an account, note, contract, security agreement, or other evidence of indebtedness or security, together with (i) all security pledged, assigned, hypothecated or granted to or held by the Debtor to secure the foregoing; (ii) all of the Debtor's right, title and interest in and to any goods, the sale of which gave rise thereto; (iii) all guarantees, endorsements and indemnifications on, or of, any of the foregoing; (iv) all powers of attorney for the execution of any evidence of indebtedness or security or other writing in connection therewith; (v) all books, records, ledger cards and invoices relating thereto; (vi) all evidences of the filing of financing statements and other statements and the registration of other instruments in connection therewith and amendments thereto, notices to other creditors or secured parties, and certificates from filing or other registration officers; (vii) all credit information, reports and memoranda relating thereto and (viii) all other writings related in any way to the foregoing. GRANT OF SECURITY INTEREST The Debtor does hereby grant to the Secured Party a continuing security interest of first priority in all of the right, title and interest of the Debtor in, to and under all of the following property whether now existing or hereafter created or arising: ","Security Agreement","10",96,"https://templates.business-in-a-box.com/imgs/1000px/security-agreement-D915.png","https://templates.business-in-a-box.com/imgs/250px/915.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#915.xml",{"title":6,"description":6},[130,131],{"label":35,"url":101},{"label":35,"url":101},"security agreement","/template/security-agreement-D915",{"description":135,"descriptionCustom":6,"label":136,"pages":8,"size":93,"extension":10,"preview":137,"thumb":138,"svgFrame":139,"seoMetadata":140,"parents":142,"keywords":147,"url":148},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: demand for extension of payment date Dear [Contact name], This will acknowledge our telephone conversation of this date. As was stated in our letter dated [Date], we should be receiving our financing by [Date].","Demand for Extension of Payment Date","https://templates.business-in-a-box.com/imgs/1000px/demand-for-extension-of-payment-date-D444.png","https://templates.business-in-a-box.com/imgs/250px/444.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#444.xml",{"title":141,"description":6},"demand for extension of payment date",[143,144],{"label":17,"url":115},{"label":145,"url":146},"Administration","business-administration","demand for extension payment date","/template/demand-for-extension-of-payment-date-D444",{"description":150,"descriptionCustom":6,"label":151,"pages":152,"size":93,"extension":10,"preview":153,"thumb":154,"svgFrame":155,"seoMetadata":156,"parents":158,"keywords":157,"url":165},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ","Secured Lumpsum Promissory Note Agreement","4","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":157,"description":6},"secured lumpsum promissory note agreement",[159,162],{"label":160,"url":161},"Business Plan Kit","business-plan-kit",{"label":163,"url":164},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",{"description":167,"descriptionCustom":6,"label":168,"pages":8,"size":169,"extension":10,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":174,"keywords":179,"url":180},"Invoice Company: Complete Address: ______________________________________________________ Phone:_________________ Fax: ________________ Email: _____________________ INVOICE #: _____________ DATE: ________________ Bill to: Address: _______________________________________ City: __________________________________________ State/Province: ___________ Zip/postal code__________ Country: ________________ Phone: _________________ Fax: __________________ Email: _________________________________________ Ship To:","Commercial Sales Invoice",42,"https://templates.business-in-a-box.com/imgs/1000px/sales-invoice-D383.png","https://templates.business-in-a-box.com/imgs/250px/383.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#383.xml",{"title":6,"description":6},[175,176],{"label":17,"url":115},{"label":177,"url":178},"Invoices & Receipts","invoice-receipt","sales invoice","/template/sales-invoice-D383",false,{"seo":183,"reviewer":196,"quick_facts":200,"at_a_glance":202,"personas":206,"variants":231,"glossary":258,"fields":288,"how_to_fill":334,"common_mistakes":365,"faqs":382,"industries":407,"comparisons":424,"diy_vs_pro":438,"related_template_ids_curated":451,"schema":461,"classification":463},{"meta_title":184,"meta_description":185,"primary_keyword":186,"secondary_keywords":187},"Promissory Note Drafting Checklist Template | BIB","Free promissory note drafting checklist template. Covers all key items—loan amount, interest rate, repayment terms, and default clauses—before you draft.","promissory note drafting checklist",[188,189,190,191,192,193,194,195],"promissory note checklist template","promissory note drafting guide","promissory note template word","promissory note items to consider","how to draft a promissory note","promissory note checklist free","loan note checklist","promissory note preparation checklist",{"name":197,"credential":198,"reviewed_date":199},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":201,"legal_review_recommended":181,"signature_required":181},"easy",{"what_it_is":203,"when_you_need_it":204,"whats_inside":205},"A Checklist Items To Consider For Drafting A Promissory Note is a structured form that walks lenders and borrowers through every decision point—parties, loan amount, interest, repayment schedule, collateral, and default provisions—before pen touches paper on the actual note. This free Word download gives you a pre-drafting reference sheet you can complete in minutes and export as PDF to share with your counterparty or legal advisor.\n","Use it any time you are preparing to lend or borrow money and need to confirm all key terms are decided before drafting the binding promissory note itself. It is especially useful when multiple stakeholders need to align on terms before a lawyer or template is engaged.\n","Party identification fields, principal amount and currency, interest rate and accrual method, repayment schedule details, collateral and security information, default and cure period provisions, governing law, and a signature/witness requirements section.\n",[207,211,215,219,223,227],{"title":208,"use_case":209,"icon_asset_id":210},"Small business owners","Organizing loan terms before lending to or borrowing from a partner","persona-small-business-owner",{"title":212,"use_case":213,"icon_asset_id":214},"Startup founders","Structuring a convertible or bridge loan from an angel investor","persona-startup-founder",{"title":216,"use_case":217,"icon_asset_id":218},"Private lenders","Confirming all terms are captured before issuing a personal loan note","persona-freelancer",{"title":220,"use_case":221,"icon_asset_id":222},"Finance managers","Standardizing internal loan documentation across business units","persona-operations-director",{"title":224,"use_case":225,"icon_asset_id":226},"Real estate investors","Preparing seller-financing terms before drafting the associated note","persona-retailer",{"title":228,"use_case":229,"icon_asset_id":230},"Attorneys and paralegals","Gathering complete client instructions before drafting a promissory note","persona-hr-manager",[232,236,240,243,247,251,255],{"situation":233,"recommended_template":234,"slug":235},"Lending money to an individual with a personal guarantee","Promissory Note (Unsecured)","promissory-note-D434",{"situation":237,"recommended_template":238,"slug":239},"Lending against real property or business assets","Secured Promissory Note","secured-lumpsum-promissory-note-agreement-D13041",{"situation":241,"recommended_template":242,"slug":235},"Structuring a loan that converts to equity at a future round","Convertible Promissory Note",{"situation":244,"recommended_template":245,"slug":246},"Documenting a demand loan with no fixed repayment date","Demand Promissory Note","demand-to-pay-promissory-note-D207",{"situation":248,"recommended_template":249,"slug":250},"Installment-based loan repaid on a defined monthly schedule","Installment Promissory Note","demand-for-payment-on-installment-promissory-note-D428",{"situation":252,"recommended_template":253,"slug":254},"Loan between family members or friends","Personal Loan Agreement","loan-agreement-D417",{"situation":256,"recommended_template":257,"slug":254},"Bridge financing between two known transaction dates","Bridge Loan Agreement",[259,261,264,267,270,273,276,279,282,285],{"term":42,"definition":260},"A written, signed promise by one party to pay a specific sum of money to another party under defined terms.",{"term":262,"definition":263},"Principal","The original loan amount borrowed, before interest or fees are added.",{"term":265,"definition":266},"Accrual Method","The basis on which interest accumulates—simple interest calculates on principal only, while compound interest calculates on principal plus accumulated interest.",{"term":268,"definition":269},"Maturity Date","The date by which the full outstanding balance of a loan must be repaid.",{"term":271,"definition":272},"Collateral","An asset pledged by the borrower that the lender can claim if the borrower defaults on the loan.",{"term":274,"definition":275},"Default","Failure by the borrower to meet any material obligation under the note—most commonly missing a scheduled payment.",{"term":277,"definition":278},"Cure Period","A defined number of days after a default event during which the borrower may remedy the breach before the lender can accelerate or enforce remedies.",{"term":280,"definition":281},"Acceleration Clause","A provision that makes the full outstanding balance immediately due and payable upon a specified default event.",{"term":283,"definition":284},"Usury","The practice of charging interest above the legal maximum rate permitted in the applicable jurisdiction.",{"term":286,"definition":287},"Governing Law","The jurisdiction whose laws control the interpretation and enforcement of the note.",[289,294,299,304,309,314,319,324,329],{"name":290,"plain_english":291,"sample_language":292,"common_mistake":293},"Lender and borrower identification","Full legal names, addresses, and entity types (individual, LLC, corporation) for both the lender and the borrower.","Lender: [LENDER FULL LEGAL NAME], [ENTITY TYPE], [ADDRESS] | Borrower: [BORROWER FULL LEGAL NAME], [ENTITY TYPE], [ADDRESS]","Using a trade name or nickname instead of the registered legal entity name—this creates ambiguity about which party is legally bound.",{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Principal loan amount and currency","The exact dollar amount being loaned, stated in numerals and words, with the currency specified.","Principal Amount: $[AMOUNT IN NUMERALS] ([AMOUNT IN WORDS]) United States Dollars","Omitting the currency code on cross-border loans—USD and CAD confusion has caused real payment disputes on otherwise straightforward notes.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Interest rate and accrual method","The annual interest rate (fixed or variable), how it accrues (simple or compound), and the day-count convention used to calculate daily interest.","Interest Rate: [X]% per annum, accruing as simple interest on the outstanding principal, calculated on a 365-day year basis.","Leaving the accrual method blank and defaulting to 'standard'—simple and compound interest produce materially different totals on loans over 12 months.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Repayment schedule","How and when the borrower repays—single lump sum at maturity, fixed installments, interest-only with balloon, or on demand.","Repayment: [X] equal monthly installments of $[AMOUNT], due on the [DAY] of each month, commencing [DATE], with final payment due [MATURITY DATE].","Specifying a payment amount without confirming it fully amortizes the loan by the maturity date—residual balances at maturity create surprise balloon obligations.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Prepayment terms","Whether the borrower may repay early, and if so, whether a prepayment penalty applies and how it is calculated.","Borrower may prepay all or any portion of the principal at any time without penalty. [OR: A prepayment fee of [X]% of the amount prepaid applies if repaid within [X] months of the note date.]","Leaving prepayment terms silent—lenders who expected interest income for the full term have no recourse when the borrower pays off in month three.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Collateral and security","Whether the note is secured or unsecured; if secured, the specific asset pledged, its approximate value, and whether a UCC filing or lien registration is required.","Security: This note is secured by a first lien on [DESCRIPTION OF COLLATERAL], estimated value $[AMOUNT], as further described in a Security Agreement dated [DATE].","Describing collateral vaguely ('business equipment') instead of by serial number, VIN, or legal description—vague collateral is unenforceable in a foreclosure proceeding.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Default events and cure period","A list of events that constitute default—missed payment, insolvency, breach of a related agreement—and the number of days the borrower has to cure before the lender can act.","Events of Default include: (a) failure to pay any amount due within [X] days of the due date; (b) borrower insolvency or bankruptcy filing; (c) breach of any material representation. Cure Period: [X] days written notice.","Setting a cure period of zero days for payment default—courts in most jurisdictions require some notice before acceleration, and zero-day clauses are frequently challenged.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Governing law and dispute resolution","The state or province whose law controls the note, and how disputes are resolved—litigation, arbitration, or mediation.","This Note is governed by the laws of [STATE/PROVINCE]. Disputes shall be resolved by [binding arbitration / litigation] in [CITY, STATE].","Selecting a governing law with no connection to where either party is located or where payments will be made—several jurisdictions will apply local law regardless.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Witness and notarization requirements","Whether the jurisdiction or lender's internal policy requires a witness signature, notarization, or both to give the note full legal effect.","Witness required: [YES / NO] | Notarization required: [YES / NO] | Notary state: [STATE]","Skipping this field and assuming no formalities are needed—some states require notarization for notes secured by real property to be recordable.",[335,340,345,350,355,360],{"step":336,"title":337,"description":338,"tip":339},1,"Identify both parties with their legal names","Enter the full registered legal name, address, and entity type for both lender and borrower. For business entities, confirm the name matches the state or provincial corporate registry.","Ask the borrower for a copy of their state business registration if you are lending to an LLC or corporation—trade names are not legal entities.",{"step":341,"title":342,"description":343,"tip":344},2,"Confirm the principal amount and currency","Write the amount in both numerals and words and specify the currency. For any cross-border arrangement, note the exchange rate mechanism if the loan is in a currency other than the borrower's functional currency.","Adding 'USD' or 'CAD' explicitly avoids currency disputes that have derailed otherwise simple repayments.",{"step":346,"title":347,"description":348,"tip":349},3,"Decide on interest rate type and accrual method","Choose between a fixed rate and a variable rate tied to a benchmark (e.g., prime + X%). Select simple or compound accrual and note the day-count convention. Check local usury limits before finalizing the rate.","Most US states cap personal loan interest rates between 10% and 36% annually—exceeding the usury ceiling voids the interest entirely in some states.",{"step":351,"title":352,"description":353,"tip":354},4,"Map out the full repayment schedule","Determine whether repayment is a single balloon, fixed monthly installments, or interest-only with a balloon at maturity. Confirm the payment amount fully retires the balance by the maturity date using an amortization calculation.","A free amortization spreadsheet takes 2 minutes to build and will immediately flag any mismatch between payment size and maturity date.",{"step":356,"title":357,"description":358,"tip":359},5,"Define collateral and any required filings","If the note is secured, describe the collateral precisely—serial numbers, legal property descriptions, or account numbers. Note whether a UCC-1 financing statement or mortgage needs to be filed to perfect the security interest.","An unperfected security interest gives the lender no priority over other creditors in a bankruptcy—file the UCC-1 the same day the note is signed.",{"step":361,"title":362,"description":363,"tip":364},6,"Set default events and the cure period","List every event that triggers default, assign a cure period of at least 5–10 days for payment defaults, and specify what happens after the cure period expires (acceleration, demand for full repayment, or seizure of collateral).","A 10-day cure period for payment default is standard in most commercial lending and reduces the risk of a court finding the acceleration clause unreasonable.",[366,370,374,378],{"mistake":367,"why_it_matters":368,"fix":369},"Using informal names instead of legal entity names","A note made out to 'John's Plumbing' instead of 'Johnson Plumbing LLC' may be unenforceable against the entity's assets, leaving the lender with only a personal claim.","Verify the exact registered name of every party before filling in the identification fields—15 minutes of registry research prevents years of enforcement headaches.",{"mistake":371,"why_it_matters":372,"fix":373},"Leaving the interest accrual method undefined","On a $50,000 loan at 8% over 3 years, simple versus compound accrual differs by roughly $3,200 in total interest—enough for a genuine dispute between parties who both think they are right.","Explicitly check either 'simple interest' or 'compound interest' in the checklist and carry that selection verbatim into the promissory note draft.",{"mistake":375,"why_it_matters":376,"fix":377},"Not verifying the interest rate against local usury limits","Charging above the usury ceiling does not just make the excess interest void—in some states, the entire note is unenforceable and the lender forfeits all interest.","Look up the usury limit for the governing jurisdiction before setting the rate, and build in a 2–3% buffer below the ceiling.",{"mistake":379,"why_it_matters":380,"fix":381},"Describing collateral vaguely","A lien on 'office equipment' cannot be enforced against a specific server or vehicle because the collateral cannot be uniquely identified at the time of seizure.","Use make, model, serial number, VIN, or legal property description for every item pledged as collateral—then copy that exact language into the security agreement.",[383,386,389,392,395,398,401,404],{"question":384,"answer":385},"What is a promissory note drafting checklist?","A promissory note drafting checklist is a structured form that guides lenders and borrowers through every decision that must be made before writing the binding note itself—parties, loan amount, interest rate, repayment schedule, collateral, default provisions, and governing law. Completing it ensures no critical term is left undefined when the note is executed.\n",{"question":387,"answer":388},"Do I need a lawyer to complete this checklist?","No—the checklist itself is an information-gathering tool, not a legal document, so no legal expertise is needed to fill it out. However, once you have completed the checklist and are ready to draft the actual promissory note, review by a lawyer is worthwhile for loans above $25,000, secured notes, or cross-border arrangements.\n",{"question":390,"answer":391},"What is the difference between a secured and an unsecured promissory note?","A secured promissory note is backed by specific collateral—real property, equipment, or receivables—that the lender can claim if the borrower defaults. An unsecured note relies solely on the borrower's promise to pay, with no specific asset pledged. Secured notes carry lower risk for lenders and typically command lower interest rates as a result.\n",{"question":393,"answer":394},"What interest rate should I charge on a promissory note?","The rate depends on the risk profile of the borrower, the loan term, and the legal usury limit in the governing jurisdiction. For most US states, permissible rates on personal loans range from 10% to 36% annually. Commercial loans between businesses often have higher statutory ceilings or none at all. Always confirm the applicable usury limit before finalizing the rate.\n",{"question":396,"answer":397},"How is interest calculated on a promissory note?","Interest is calculated based on the accrual method specified in the note. Simple interest is computed only on the outstanding principal: Principal × Rate × Time. Compound interest accrues on both principal and previously accumulated interest, producing a higher total cost over time. The checklist prompts you to choose one method explicitly so there is no ambiguity in the note.\n",{"question":399,"answer":400},"What happens if a borrower defaults on a promissory note?","If the borrower misses a payment and fails to cure within the specified cure period, the lender may typically accelerate the note (demand the entire balance immediately), pursue collection through the courts, or—for secured notes—initiate proceedings to claim the pledged collateral. The exact remedies depend on the default provisions drafted into the note.\n",{"question":402,"answer":403},"Does a promissory note need to be notarized?","In most US states, a promissory note does not require notarization to be legally binding between the parties. However, if the note is secured by real property and needs to be recorded in a county land registry, a notarized signature is typically required. The checklist includes a field to confirm whether notarization is needed for your specific situation.\n",{"question":405,"answer":406},"Can a promissory note be used between family members?","Yes—in fact, the IRS requires that loans between family members charge at least the Applicable Federal Rate (AFR) published monthly to avoid the loan being recharacterized as a taxable gift. A properly documented promissory note with market-rate interest protects both parties and satisfies IRS requirements for loans above $10,000.\n",[408,412,416,420],{"industry":409,"icon_asset_id":410,"specifics":411},"Real estate","industry-real-estate","Seller-financing arrangements require a note tied to a deed of trust or mortgage, making collateral description and recording requirements especially critical checklist items.",{"industry":413,"icon_asset_id":414,"specifics":415},"Financial services","industry-fintech","Private lenders and credit funds use structured checklists to standardize pre-drafting review across high volumes of notes with varied terms.",{"industry":417,"icon_asset_id":418,"specifics":419},"Professional services","industry-professional-services","Accounting and law firms use the checklist to gather complete client instructions before drafting, reducing revision cycles and billable time.",{"industry":421,"icon_asset_id":422,"specifics":423},"Manufacturing","industry-manufacturing","Equipment financing notes must precisely describe serial numbers and model details in the collateral field to support a valid UCC-1 filing.",[425,428,431,434],{"vs":42,"vs_template_id":426,"summary":427},"promissory-note-D428","A promissory note is the binding legal document a borrower signs to promise repayment. This checklist is the pre-drafting reference tool used to confirm all terms before the note is written. Complete the checklist first, then use the finalized terms to populate the note itself.",{"vs":107,"vs_template_id":429,"summary":430},"D{LOAN_AGREEMENT_ID}","A loan agreement is a bilateral contract that both parties sign, covering the full mechanics of the lending relationship including covenants and representations. A promissory note is a unilateral promise by the borrower alone and is simpler in structure. Loans with complex covenants or multiple drawdowns typically use a full loan agreement rather than a standalone note.",{"vs":253,"vs_template_id":432,"summary":433},"D{PERSONAL_LOAN_AGREEMENT_ID}","A personal loan agreement is used for informal lending between individuals or family members. A promissory note is more formal and is preferred when the loan needs to be sold, assigned, or enforced through the courts. The checklist applies equally to preparing either document.",{"vs":435,"vs_template_id":436,"summary":437},"IOU","D{IOU_ID}","An IOU is an informal acknowledgment of a debt with minimal legal structure—no interest rate, no repayment schedule, and no default provisions. A promissory note is a legally enforceable instrument with all terms specified. The checklist exists precisely to ensure the promissory note captures everything an IOU leaves out.",{"use_template":439,"template_plus_review":443,"custom_drafted":447},{"best_for":440,"cost":441,"time":442},"Individuals and small businesses organizing loan terms for straightforward unsecured notes under $25,000","Free","10–15 minutes",{"best_for":444,"cost":445,"time":446},"Secured notes, cross-border loans, or any loan above $25,000 where enforceability is critical","$150–$400 for a one-hour attorney review","1–2 business days",{"best_for":448,"cost":449,"time":450},"Complex structured loans, convertible notes with equity conversion triggers, or multi-party lending arrangements","$500–$2,000+ for a fully custom note and security agreement","3–7 business days",[235,452,254,453,454,239,455,456,457,458,459,460],"loan-agreement-D12711","security-agreement-D915","demand-for-extension-of-payment-date-D444","sales-invoice-D383","purchase-order-D1411","credit-note-D13639","non-disclosure-agreement-nda-D12692","business-plan-canvas-(one-page)-D12527","financial-projections_12-months-D360",{"emit_how_to":462,"emit_defined_term":462},true,{"primary_folder":115,"secondary_folder":464,"document_type":465,"industry":466,"business_stage":467,"tags":468,"confidence":473},"loans-and-promissory-notes","checklist","general","all-stages",[469,465,470,471,472],"loan","promissory-note","drafting","lending",0.95,"\u003Ch2>What is a Checklist Items To Consider For Drafting A Promissory Note?\u003C/h2>\n\u003Cp>A \u003Cstrong>Promissory Note Drafting Checklist\u003C/strong> is a structured reference form that walks lenders and borrowers through every material decision point—party identification, principal amount, interest rate and accrual method, repayment schedule, collateral, default triggers, and governing law—before the binding note itself is written. By capturing all terms in one place ahead of drafting, it eliminates the gaps and ambiguities that turn straightforward loan arrangements into costly disputes. This free Word download gives you a fillable, printable checklist you can complete in under 15 minutes and share with your counterparty or attorney as a definitive record of agreed terms.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Skipping a pre-drafting checklist is the most common reason promissory notes end up with missing or contradictory terms—an interest rate specified without an accrual method, collateral described too vaguely to enforce, or a cure period so short a court will not uphold acceleration. Each gap costs money: a vague collateral description can make a security interest unenforceable in bankruptcy; an undefined repayment schedule triggers immediate disputes over what was actually owed; a rate above the local usury ceiling can void all interest on the note. This checklist ensures every term is decided before a single sentence of the note is written, giving both parties a shared reference point and giving any attorney you engage complete instructions from the first call.\u003C/p>\n",1778696351023]