103 Best Promissory Note Templates

1. Clarity of Terms
Ensure the principal amount, interest rate, payment schedule, maturity date, and currency are clearly stated, with any compounding or adjustments specified. Include details on late fees, grace periods, and what happens if a payment is missed to prevent ambiguity later.

2. Payment Schedule and Interest
Provide exact due dates, installment amounts, and the total interest with a clear calculation method. State prepayment rights, any penalties for early payoff, and how interest is calculated for partial payments to avoid disputes.

3. Security and Default Terms
If applicable, specify collateral or guarantees and outline what constitutes default, required notices, and remedies (including acceleration) in a straightforward sequence. Include governing law and dispute resolution to ensure enforceability.