Promissory Note Add Value Choice For Free

A key benefit that a promissory note provides you, whether you are the borrower or the one providing the fund, is flexibility. A promissory note allows you to specify how payments will be made -- in installments, at a future point in time or on demand.

A promissory note is a contract, a binding agreement that someone will pay your business a sum of money. However under some circumstances if the note has been altered, it wasn't correctly written, or if you don't have the right to claim the debt then, the contract becomes null and void.

"A promissory note is enforceable through an ordinary breach of contract claim." In other words, it's not required that the loan be secured; an unsecured loan is still enforceable as long as the promissory note is fully completed.

Face value is the amount of a debt obligation that is stated as payable in a debt document. The face value does not include any of the interest or dividend payments that may later be paid over the term of the debt instrument.On the maturity date of the debt instrument, its issuer will redeem it for the face amount.

A promissory note is a relatively informal, but still legally binding, loan commitment. Simplicity and flexibility are two primary advantages of using a promissory note in lieu of a loan. However, promissory notes aren't as beneficial in complex situations where a more formal loan agreement is necessary.

Generally, as long as the promissory note contains legally acceptable interest rates, the signatures of the two contracted parties, and are within the applicable Statute of Limitations, they can be upheld in a court of law.

Identify the terms of the note that are creating difficulty in repayment. Communicate your need to modify the terms of the note to the note holder. Have the holder of the note draft modifications to the original note. Sign and notarize the modified promissory note.