A promissory note, also called just a note or a note payable, is a legal document that can be used for a financial transaction involving two parties at a later date or under certain conditions at the demand of a loaner. It is simple a written agreement for the repayment of a debt. A person can be fined and taken to court if they fail to abide by the conditions of a signed promissory note.
Promissory notes are written commonly by lenders, banks, and lawyers. However, it will be just as legal if written properly by two individuals. This means that you could complete and sign a note form for relatives when borrowing money from a friend or family member.
Aside from writing a promissory note for relatives, you could use a form for rent collection, student loans, employee loans, car purchases, and more. It will help greatly with your collection efforts if you learn how to write a promissory note.