The promissory note describes as it is financial document which consist of a written promise by one party to another party to pay fixed amount on define date and time. Mostly the promissory notes are used in property which we purchase through bank loan or secured by any trust. If you does not able to pay stated sum on fixed date which is mention on promissory note and you are fail to pay than you will lose the secured item or property. Every country and state has their own basic law and principles for making the promissory notes. The written promise or agreement is better than oral one and it is easier to prove the courts.
The promissory note is not a simple document to prepare these notes it is necessary for you to hire a lawyer for preparing the promissory notes. The promissory note contains some important component are as following; the payer of promissory note, the lender of promissory note, issue date of promissory note, amount to be paid, interest rate, term of payments, end date of promissory note and the name of the lawyers which prepare the promissory notes. The promissory notes are also worked as a type of private money. These notes are also used by the organization or business man for lending the money from bank.