Promissory Note for Companies with Interest and Instalments
This Interest & Instalments Promissory Note is a simple way for a company to acknowledge and document a debt. It is a legally binding contract and consists of a written, dated and signed unconditional promise by the ‘promisor’ (a company) to pay a definite sum of money to the ‘payee’ (who may be an individual or a company), either on demand or at a specified future date.
The note is signed only by the promisor (and not by the payee/lender).
As a general principle, for promissory notes, the law presumes (contrary to the usual rules of contract) that consideration is provided. It is therefore not necessary to execute a promissory note as a deed.
The debt recorded by this Promissory Note is unsecured.
What does Promissory Note for Companies with Interest and Instalments do?
It records a company’s promise to repay a debt, with interest, where repayment is to be made in instalments.
What does Promissory Note for Companies with Interest and Instalments cover?
- An unconditional promise to pay a definite sum, payable on demand or on a specified future date
- Interest on the debt
- Repayment by instalments (two alternative instalment structures)
- An unsecured debt arrangement between the promisor and the payee
When should you use Promissory Note for Companies with Interest and Instalments?
Use this version if a company is borrowing and you want interest to apply and repayment to be made by instalments, rather than by a single lump-sum payment.
Two repayment options are provided. The first option allows you to specify the dates on which a defined sum will be paid. The second allows for a specified number of instalments (weekly or monthly) of a specified sum on a specified day of each week or month.
Choose the right version
If you need a more basic promissory note (without interest and instalments), use:
If the promisor is an individual (rather than a company), use:
Promissory Note for Companies with Interest and Instalments is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.