Promissory Note
A Promissory Note is a negotiable instrument that allows you to set out the payment of a sum of money.
Last updated October 23, 2025
Suitable for Australia
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What is a promissory note?
What is a promissory note?
When should you use a promissory note?
When should you use a promissory note?
What should be in a promissory note?
What should be in a promissory note?
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Frequently asked questions
How is this document different from a loan agreement?
keyboard_arrow_upCan you use this note for any amount or purpose?
keyboard_arrow_upDoes the note allow for interest to be charged?
keyboard_arrow_upIs this document legally binding in all Australian states and territories?
keyboard_arrow_upWho can be named as payee and issuer?
keyboard_arrow_upWhat are the main limitations of this document?
keyboard_arrow_upWhat steps should you take to finalise and use this document?
keyboard_arrow_upView Sample Promissory Note
The Legal Risk Score of a Promissory Note Template is Low
Our legal team have marked this document as low risk considering:
- The promissory note requires the payee to present the note to demand payment, which might delay access to funds if the note is not readily presentable or if the location of presentation is inconvenient or unclear.
- Interest accrues only after a certain date and is payable in arrears, which could result in lower returns for the payee if the note is presented much later than the start date of interest accrual.
- The note is governed by unspecified laws, which introduces uncertainty regarding the legal framework and interpretations that apply, potentially complicating enforcement or legal proceedings.
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