A loan note is an instrument that helps a certain party to pay a certain amount of money to certain other party, by following the pre-agreed terms. The date for payment will be select according to the agreed terms between the two parties. The common elements included in the loan note are, in the case of default the rights of the payee, maturity date, terms of payment, parties of the note, interest rate as well as the principal amount. The loan note is a professional document that should be drafted in a professional format. In order to make your loan note valuable, it has to sign by both parties. Before sending out your loan note, you must reread your loan note, as to avoid any grammatical and spelling mistakes.
At the time of need, you can easily use your loan note as a financial tool that can be served as an agreement between any two or more than two parties. The loan note has a lot of legal value, so you can also use it in the court of law. The loan note is so important, because it contains all of the terms that are accepted by the both parties in the written form. You can use the loan note to find out the payment due date. Your font style and font size in your loan note must be simple and easy to read. The loan note must be prepared on the white sheet of paper, not on the colored paper. A loan note is a highly professional binding document.