Promissory Note - Advice And Consulting
Why would anyone need a note advisor? "Experience is a good school.
But the fees are high.
" - Heinrich Heine If you are going to be signing a note as a borrower, or if you are going to be lending/investing money that will be evidenced by a note, you should get some specialized advice before signing your name or parting with your money.
The basic reason for getting advice is to avoid negative surprises and losses after the transaction has been finalized and closed.
After the closing, it is too late to correct the errors.
Before going any further, let's slow down and get a clear understand of exactly what type of business transaction we are discussing--let's define some key terms and identify some key requirements.
After we review them, we will see just how many places exist for errors and for problems to occur.
It will become very clear that getting expert advice before closing the transaction is a good investment that will payoff for years to come.
Note Definition It is a legally binding document between a lender of money and a borrower.
Usually, the note contains an unconditional promise to repay the debt in accordance with specific terms and conditions.
Note--Requirements
You have to know the business.
Risk comes from what you don't know.
"From the errors of others, a wise man corrects his own.
" - Publilius Syrus "I do not think much of a man who is not wiser today than he was yesterday.
" - Abraham Lincoln
But the fees are high.
" - Heinrich Heine If you are going to be signing a note as a borrower, or if you are going to be lending/investing money that will be evidenced by a note, you should get some specialized advice before signing your name or parting with your money.
The basic reason for getting advice is to avoid negative surprises and losses after the transaction has been finalized and closed.
After the closing, it is too late to correct the errors.
Before going any further, let's slow down and get a clear understand of exactly what type of business transaction we are discussing--let's define some key terms and identify some key requirements.
After we review them, we will see just how many places exist for errors and for problems to occur.
It will become very clear that getting expert advice before closing the transaction is a good investment that will payoff for years to come.
Note Definition It is a legally binding document between a lender of money and a borrower.
Usually, the note contains an unconditional promise to repay the debt in accordance with specific terms and conditions.
Note--Requirements
- Correct identification of the lender and the borrower
- Address of the borrower
- Address where payments are to be made
- Secured or unsecured
- Description of the security
- Exact amount owed
- Interest rate
- Payment schedule
- Right to legally transfer the ownership of the note
- Late payment and default provisions
- Location where the promissory note is entered into
- Actual signatures of the borrowers
- Credit History of the Borrower
- Usury Laws of the State
- Collateral security valuation
- Personalized consultation and advice
- Understanding of your individual financial goals and objectives
- Understanding of your specific reason for doing the transaction
- Awareness of potential problem areas to be addressed
- Understanding the business, the laws and the regulations involved
- Knowing what documents and records are needed
- Making certain that all of the promissory note requirements have been meet
- Making certain that the due diligence steps have been completed
You have to know the business.
Risk comes from what you don't know.
"From the errors of others, a wise man corrects his own.
" - Publilius Syrus "I do not think much of a man who is not wiser today than he was yesterday.
" - Abraham Lincoln