Promissory note
A written promise to pay a specified sum of money.
Promissory notes are formal financial instruments that outline the terms of a loan, including repayment schedules and interest rates. They provide legal assurance of payment, aiding in financial planning and risk management. Understanding the terms and implications of a promissory note is essential for both lenders and borrowers to ensure compliance and avoid disputes.
Used in a sentence
The client issued a promissory note to secure the initial payment.
Synonyms/variation
IOU
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