There is no doubt that the business of lending and borrowing is really profitable if you do it in the right and best manner. You should make sure if you are the lender that once you are lending the money all legal records and paper work is done properly. The same principle goes for the borrower as well. You have the responsibility to make sure that there is no extra clause in the contract, other than the one on which both the parties agreed upon. Therefore the importance of a good and complete paperwork cannot be over emphasized. The legal name of the contract between the lender and the borrower is a promissory note. One can find a promissory note template online for free and for some fixed amount of money as well. My recommendation is to go for the free one since it is equally as good as the others.
So what is a promissory note? Well it’s a legal document signed by both parties that proves that a transaction of a certain amount has taken place. It contains signs of both parties and in addition to this there is a timeline for the return of the money and actions that will be taken in case the borrower fails to return the money on time. It is recommended that all possible scenarios are kept in mind while writing a complete promissory note. It should contain the possibility of death on the borrower and the lender side. Once all such issues are taken care of then signing from both parties should be done.
One can find a promissory note template from the internet for free. This is also one of the good things that the internet has brought for us. You can search for them and choose the one template that suits you the most. What is really important is that you should first know exactly what you want in your promissory note. How many options would you like to include? Only once you have the requirements with you should you go online and look for a promissory note template.
There is no doubt about the fact that borrowing and lending is an inevitable thing. In the life of every one of us there must have been times when you need to borrow some money from the others and there is nothing bad about that. The only thing that should be kept in mind is that you should make sure that you do the transaction in the best possible way i.e.in a way that all the legal requirements are fulfilled. This is really important for the both the lender and the borrower. For a lender this would mean that he or she is sure of what will happen if the borrower defaults and the borrower also know exactly the consequences of his non return of loan. Only once both the parties are clear about the consequences can one be sure that the transaction will go smoothly.
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