A promissory note is the written promise to repay a loan. It documents the principal, interest rate, payment schedule, default provisions, and any security for the loan. Even between family members, putting the loan in writing protects everyone involved.

We draft promissory notes for business loans, owner financing on the sale of a business, intra-family loans, and seller-financed real estate transactions. Each note is tailored to the situation, with attention to applicable IRS interest rate rules and Arizona usury limits.

When the loan is secured by collateral, we coordinate the security agreement and any necessary filings so the lender's rights are properly perfected.

If you are about to lend or borrow money in any meaningful amount, a properly drafted note costs little and prevents the kind of misunderstandings that strain relationships.

Who this is for

• Business owners offering or receiving owner financing
• Family members making intra-family loans
• Sellers carrying back paper on a real estate or business sale

What you gain

• Clear documentation of the loan terms
• Compliance with applicable interest rate rules
• Properly drafted default and remedies provisions
• Optional security agreement coordination