A promissory note is a written promise to pay a specific amount of money to someone at a particular time, or “on demand.”
Common Uses for Promissory Notes
Promissory notes use for mortgages, car loans, credit lines, home equity loans, loans to small businesses and entrepreneurs, student loans, and personal loans. Promissory notes also can be used for loans to family or friends. It may seem awkward to ask your brother or best friend to sign a legal document, but a promissory note protects both you and your relationship. It clarifies your expectations and shows that you are serious about being paid back.