When President Obama (right) met Usain Bolt (left) he could not resist joining the world-class sprinter in striking his trademark 'lightning pose'. Before striking Bolt's signature pose, Obama praised him saying that 'nobody's ever been faster'.
Decide on a secured or unsecured promissory note for repayment. A secured promissory note requires the borrower to provide goods, property, or services as collateral, in the event the borrower defaults on the debt. The value of the collateral should be equal to or greater than the principal of the debt.
Always keep in mind this is debt obligation. A promissory note means that by nature you have the money to make payments on the loan, cautions Danny Freeman, principal advisor with Darda Financial Services in Winston-Salem, North Carolina. Be sure to have the cash flow to service the debt, he says. If you have uneven cash flow you should not enter into a promissory note; perhaps you should look into an equity arrangement.. Treat a personal loan as carefully and as formally as any other business transaction. How To Write A Promissory Note: Preparing a Promissory Note. A promissory note is pretty much a do-it-yourself document.