If you lend money to someone or are lent money by someone else, then chances are a loan promissory note is involved. So what is a loan promissory note and what does it do?
First of all, a loan promissory note is basically a formal and legally relevant way of showing that a loan has been made. It will tell who the two parties are who are involved with the loan, it will tell how much the loan was for, and it will also tell when the money is expected to be repaid.
A loan promissory note can be a great way to prove that you loaned someone else money in the event that you have to take them to court to get your repayment.