{"id":42176,"date":"2021-06-17T12:19:39","date_gmt":"2021-06-17T12:19:39","guid":{"rendered":"https:\/\/bornrealist.com\/?p=42176"},"modified":"2021-06-17T12:19:39","modified_gmt":"2021-06-17T12:19:39","slug":"when-is-a-promissory-note-appropriate","status":"publish","type":"post","link":"https:\/\/bornrealist.com\/when-is-a-promissory-note-appropriate\/","title":{"rendered":"When Is A Promissory Note Appropriate?"},"content":{"rendered":"

A promissory note is a written agreement for the repayment of a loan. It’s a commitment to pay and entails all the details of the promise. A bank can issue a promissory note, but it can also be issued by a person, a corporation, a business, or someone giving loans.<\/span><\/p>\n

Although a promissory note is not really a contract, you will likely be required to sign it <\/span>with CocoSign<\/span> before taking out a loan.<\/span><\/p>\n

What is a Promissory Note, and How Does It Work?<\/b><\/h2>\n

There are two types of promissory notes: secured and unsecured. A loan issued only on the maker’s ability to pay back is referred to as an unprotected promissory note. A secured promissory note is one in which the loan is backed by a valuable asset, such as a home.<\/span><\/p>\n

These notes are legally binding documents. If the debtor fails to comply with the deal and the loan balance conditions, the provisionary notes may be sued.<\/span><\/p>\n

Promissory Notes Come in a Variety of Types<\/b><\/p>\n

Promissory notes come in a variety of shapes and sizes. The differences are based on the type of debt and the details contained in the note:<\/span><\/p>\n