Name: Promissory Note
Brand: Made It Legal
SKU: 5564
Price: 40.95 CAD
Availability: InStock

Promissory Note

$39.00

Step 1 of 7

Let's get started with your Promissory Note the right way.
What kind of promissory note do you need? See the "?" icons for more details.*
- Demand promissory note
- Term promissory note
- Grid promissory note
A Demand Promissory Note is the simplest kind of promissory note. It's a basic "I owe you" that says the borrower promises to pay back the loan when the lender asks for repayment.

A Term Promissory Note includes a schedule of regular payments and an end date (called the "Maturity Date") by when the loan has to be repaid.

A Grid Promissory Note works much like a simple line of credit. The borrower can draw on the note, payback some of the balance, and borrow again. The borrower promises to repay the debt when the lender asks for complete repayment.
Tell us who you are in this deal?*
- The lender
- The borrower

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Let's go over how much is owed and the interest rate.
How much is owed?*
What is the total amount that can be borrowed?*
Tell us how you will charge interest.
Tell us how you will charge interest.*
- Fixed interest rate
- Variable interest rate
A fixed interest rate means the interest rate on the loan stays the same for the life of the loan.

A variable interest rate means the interest rate changes based on an underlying benchmark rate. Sometimes a variable rate is a called a "floating" rate. For example, a variable interest rate could be Prime + 5%. The "Prime" rate is the benchmark rate set by a major bank.
Interest opt out
- Skip this part, no interest will be charged
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What annual variable interest rate will be charged? For example, prime + ___%. Enter in the "plus" percentage below.
What annual fixed interest rate will be charged?
Interest rate*
Will interest be simple or compounded?*
- Simple
- Compounded
The basics of interest

Interest is the cost of borrowing money. So, an interest rate of say 5% per year means the borrower promises to pay an extra 5% of the outstanding loan amount to the lender each year.

Simple interest

Like the name suggests, simple interest is the most basic kind. In our 5% per year interest example, on a $10,000 loan simple interest means the borrower would pay the lender an extra $500.

Compound interest

Compound interest is slightly more complicated and much more common. In easy terms, it's interest on interest. Compounding is done by a set period.

In our 5% per year interest example, on a $10,000 loan with annual compound interest, the borrower would owe $500 in interest at the end of the first year. The new balance of the loan would then be $10,500.

The 5% interest would then be applied to the new $10,500 balance so at the end of the second year, the borrower would owe $525 in interest that year. The interest grows each year (it "compounds") until the loan is paid off.
How often will interest be compounded?*
How often will interest be payable?*
You can make interest payable in regular time periods (e.g. monthly), or you can say that interest will only be payable on demand (i.e. the shareholder making the loan calls for an interest payment).

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Hidden
Term note
Let's go over payments now.
Payment amount*
Since your loan is a variable interest loan, enter just the principal payment that is owed.

With a variable rate loan, the amount of interest payable will change with any interest rate changes. Your Promissory Note will say that variable interest will be calculated on the actual payment date and due in addition to the principal payment.
Since your loan has a fixed interest rate, this is the combined principal plus interest payment.
How often will payments be made?*
When do payments start?*
MM slash DD slash YYYY
What is the end date of the loan when everything must be repaid?*
MM slash DD slash YYYY
Payment schedule choice
- Skip this part and make a payment schedule
You may wish to make your own payment schedule. For example, rather than having equal payments you may wish to include a balloon payment (a repayment of a larger amount at the end of the loan period). Choose this option to customize your repayment schedule to your own liking.
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Fill out your payment schedule and we will include it in your Promissory Note.*

Date	Principal	Interest	Total Payment

Fill out your payment schedule and we will include it in your Promissory Note.*

Date	Principal	Interest (estimated)	Total Payment (estimated)

Fill out your payment schedule and we will include it in your Promissory Note.*

Date	Payment

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Payment schedule data entry opt out
- Attach your own payment schedule
If you already have a payment schedule made up and would rather not type it all out again here, check this box and attach a copy of your payment schedule to your Promissory Note on your own when you're done.
Remember to attach a copy of your payment schedule to your Promissory Note on your own when you're done.
Hidden
Payment formula functionality field
- Yes
Hidden
Grid
Make a record for any advances already made.

Grid record*

Date	Amount of Advance	Amount of Repayment	Balance Outstanding	Recorded By

Grid opt out
- Skip this part
Hidden
Demand
How many days should the borrower be given before a demand for repayment is due?
Repayment is due after these many days notice to the borrower.*
Due immediately
- Due immediately

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Let's get your details.
How is your business set up?*
- Sole Proprietor
- Corporation
- Limited Partnership
- General Partnership
Being a sole proprietor means you haven't incorporated and are doing business in your own personal name.
Please tell us what name to put on the document.*
First Last
Please tell us the name of the business.*
Tell us the name of the general partner of the limited partnership.*
Limited Partnerships always have a General Partner (a "GP"). The GP is the one that signs contracts for the Limited Partnership.
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Who is signing on behalf of the business?
This part is optional.
First Last Job Title
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And now let's fill in the borrower's details.
And now let's fill in the lender's details.
Is the other party a person or company?*
- Person
- Company
Please tell us what name to put on the contract.*
First Last
Please tell us the name of the business.*
Who is signing on behalf of the business?
This part is optional.
First Last Job Title

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Promissory Note

Step 1 of 7

Let's get started with your Promissory Note the right way.

Let's go over how much is owed and the interest rate.

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Term note

Let's go over payments now.

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Grid

Make a record for any advances already made.

Demand

How many days should the borrower be given before a demand for repayment is due?

Tell us what other features you want for your Promissory Note. Check all that apply.

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Let's get your details.

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And now let's fill in the borrower's details.

And now let's fill in the lender's details.

Let's add the finishing touches to your document now.

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Promissory Note

Step 1 of 7

Let's get started with your Promissory Note the right way.

Let's go over how much is owed and the interest rate.

Section Break

Term note

Let's go over payments now.

Section Break

Section Break

Grid

Make a record for any advances already made.

Demand

How many days should the borrower be given before a demand for repayment is due?

Tell us what other features you want for your Promissory Note. Check all that apply.

Section Break

Section Break

Section Break

Section Break

Let's get your details.

Section Break

Section Break

And now let's fill in the borrower's details.

And now let's fill in the lender's details.

Let's add the finishing touches to your document now.

Legal help you can get through in less than the time it takes to finish your coffee.

Recommendations

Here's what else you may need:

Resume

Send a little love to Made It Legal.

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