Learn about promissory notes: what they are, why they're important, different types, legal implications, and how to write one to protect your financial interests.

A promissory note is a contract between two parties. One party is obtaining a loan from the other, promising to repay the money within a designated period of time.

But promissory notes are also used to structure loans to later-stage companies, says David Spreng—founder and CEO of the venture debt firm Runway Growth Capital—and even by banks.

Issue 12, 2022 Welcome! Welcome to our 12th and final edition of Promissory Notes of 2022. As we wrap up the year and look forward to 2023, we welcome any thoughts you have about this publication.

A promissory note, in its simplest terms, is a written statement evidencing that money is owed to the seller/lender (the Holder) by the author (the Maker) of the statement.