41 Best IOU Templates

1. Clear Identification and Parties
Ensure the IOU template lists the exact borrower and lender names, contact details, and any relevant addresses. Include a date and a unique reference number to avoid confusion in future communications or disputes.

2. Specific Terms and Amounts
State the exact amount owed, currency, and a clear deadline or payment terms (due date, installments, interest if any). Mention what constitutes repayment and any conditions for partial payments to prevent ambiguity.

3. Legal Validity and Record Keeping
Add a statement that the IOU is a binding acknowledgment of debt and is signed by the borrower; consider having witnesses or a notary if the amount is substantial. Keep both digital and physical copies, with secure storage and a clear chain of possession for future reference.