We often make loans to family and friends based on verbal agreements.
However it is often the case that the borrowing party is either unable or unwilling to replay the loan.
A further complication is that misunderstandings arise in regards to the repayment terms, timeframe and in some cases whether a loan was made or a gift was given.
A Promissory note will safeguard your legal rights when making loans.
We all expect repayment when making loans and usually have no doubts that we will get the funds back as agreed initially.
Most people are trusting when it comes to making loans to family and friends that a verbal agreement would suffice.
Often, they are shocked and appalled of what transpires when it is time for repayment.
The solution is a legal document called a promissory note which is a promise to pay on demand or at a stated time.
This legal document would remove any misunderstandings and would legally protect the rights of the lender.
Furthermore, it can serve as a proof that loan was made with the repayment terms in a court of law.
In the past, a promissory note was drafted by an attorney at exuberant costs.
Nowadays, it is possible to obtain one online at a fraction of the price charged by a legal counsel from the comfort of the user's home.
The form is purchased online, instantly downloaded and printed.
The whole process takes less than five minutes.
Never make a loan without a promissory note.
Make sure your rights are protected.
It may possible to sign a promissory note after the loan given is given if the borrowing party agrees but it is prudent and strongly recommended to do it before the loan is given.