How to Fill Out a Promissory Note Without Errors?

Do you know how to fill out a promissory note easily and without errors? 

According to Decree No. 2,044/1908, if a collection is made with a promissory note that contains erasures, is incompletely filled out and does not specify the name of the person who must be paid, the document will be considered invalid. 

In addition, there is other information that must be filled out to ensure the safety of all parties involved.

Read the text and find out how to fill out a promissory note!

What is a promissory note and what is it for?

During negotiations, two people can formalize a payment commitment through a promissory note. 

This payment relationship can occur between both individuals and legal entities.

When filling out the document, the issuer, who is the person assuming a debt, promises to pay a certain amount to the beneficiary within a period agreed upon by the parties.

The promissory note is a traditional and simple document, and its first records date back to the Middle Ages.

Despite its simplicity, it is legally accepted and can be useful in different types of financial commitments.

It can be used to make formal or informal arrangements, and is a great tool to guarantee the security of a person with a debt to receive. 

How does it work?

This document represents the debt. It must contain information about the amount that must be paid, to whom it will be paid, and also when and how it must be paid off. 

It has no contractual value between those involved, it only has legal value regarding who must pay, when and to whom.

If it is filled out correctly and signed, it has legal value, in which case it can be collected in court.

For it to be valid, all data must be filled in, especially the issuer (subscriber) and the beneficiary (recipient).

Furthermore, payment amounts and dates cannot be missing.

Although it may seem somewhat informal, the promissory note is one of the main documents accepted by the courts to formalize financial transactions between individuals or legal entities, when there is no involvement of financial institutions.

Find out below How to fill out a promissory note correctly. 

How to fill it out?

By now, you have discovered what a promissory note is and how important it is for making your monetary transactions safer. 

In addition, you also understand how important it is that it is filled out correctly, so that it has legal value and you can collect the debt legally in the event of default.

So, see below how to fill out this document!

1. Number

In the “Number” field, you can indicate whether the invoice will be paid in just one installment or more. 

This field can be filled out as on a credit card statement. If you make a purchase and pay in 3 installments, for example, it will be broken down as follows on the next statement: 1/3.

In other words, you will be paying the first installment of three. When you get to the last installment payment, it will be as follows: 3/3.

In the promissory note you can follow the same basis. If it has not been paid in installments, you should only put 01 of 01 or 1/1, or just the number 1.

2. Expiration date

This is another very important field when filling out a promissory note and must be filled out correctly. 

It should be filled in with the date on which the debt must be paid off. For example, you lent money and the borrower said he would pay you back on the 10th of the next month.

Set the due date for the note on the 11th. In case of any unforeseen circumstances, be sure to include the month and year as well.

When a note does not have a date, it may mean that payment must be made on the same day it was filled out.

3. Note value

This is another very common question for those looking for how to fill out promissory note without errors. 

This is because people have doubts about whether the value should be filled in in full or numerically.

In fact, it is important that the amount is presented in two ways, just as it is filled in on the check.

See the example below: #R$800.00# (Eight hundred reais).

As we can see in the example, the value was between the tic-tac-toe or hashtags. This is an important measure to prevent it from being changed by someone else.

So, whenever you fill in the value of a promissory note, put the numerical value between hash marks and then write it out in full, as in the example.

4. Name of creditor, beneficiary or borrower

This field must be filled in with the name of the person who will receive the promissory note amount. 

The name must be complete, apart from that, it is essential to include the person's CPF.

5. Name and CPF of the issuer, debtor or subscriber

This field must be filled in with the name of the person assuming the debt, that is, the debtor. 

It is also essential to include the person's CPF number, so be sure to fill it out.

The name must be complete, that is, without abbreviations or exclusion of surnames.

6. Date of issue

You've already filled in the promissory note due date, right? 

So what is issue date?

The date of issue refers to the day the document was issued, in other words, generated, completed or agreed upon.

7. Debtor's address

Another field that must be filled in is the issuer's address, as it will serve as the billing address, if necessary.

The information must be complete, including: street, house number, state, city, neighborhood, complement, if possible, include the zip code as well. 

8. Signature

This field cannot be left out, as it provides greater security for the transaction. It is essential that the issuer/debtor signs the promissory note. 

Remember, the promissory note can only be collected in court if it is correctly filled out and signed. 

Some information in the fields may vary depending on the promissory note model you purchase, but in short, the examples will be useful to help you fill out any model.

Take a look at the model we brought to present to you below. It is from the store Exceleasy.com.br. 

On the website you will find promissory note templates available for download at great prices.

Who is the issuer? The payer or the receiver?

People with doubts about how to fill out a promissory note, They also have difficulty in differentiating who is the issuer and the beneficiary, and the role of each.

The issuer, also known as the underwriter, is responsible for paying the debt. The person who will receive the agreed amount is known as the borrower or beneficiary.

Therefore, don't make any more mistakes when filling out the promissory note. The issuer is the one who will assume the debt, that is, the person who will make the payment. 

It is very important not to forget to fill in these fields: issuer, amount and beneficiary.

Who should keep the promissory note?

The promissory note remains with the creditor and is only returned to the debtor when he makes the payment. 

If the debt was paid in installments, he will receive a promissory note every time he makes the payment. 

It is very important to request your life when paying the debt, as it is the guarantee that the debt has been paid off.

What happens if I don't pay a promissory note?

Failure to comply with the amount described in the promissory note may result in legal action. 

How to dispute a promissory note?

If the debtor fails to fulfill his obligations, the creditor has the right to recover the amounts in court. 

If the amount of the debt exceeds 20 minimum wages, it will be necessary to hire a lawyer. 

One of the consequences that the debtor may face if he does not pay off the debt is the seizure and future auction of the assets in his name.

Is it worth issuing this document?

The promissory note provides greater security for operations and can be collected in court. 

However, due to the ease of credit, the risk of default is also very high.

So, it will only be worth it in some situations, while in others, it will only bring losses.

If you plan to accept this type of contract more frequently, you need to analyze each client's profile before approving them.

It is very important to remember that if you accept promissory notes on a large scale, things can get out of control.

Imagine how many legal challenges you will have to make in the event of default.

For small amounts, is it worth all the headache and hassle?

And for high amounts, have you calculated the costs of fees, among other expenses that a legal process may entail?

Therefore, it is important to evaluate before accepting this type of document to know whether or not it is worth it.

In any case, if you don't plan on using it on a large scale, just sporadically, it can bring many advantages and security to your simplest monetary transactions.

Conclusion

So, did you enjoy finding out? how to fill out promissory note correctly? 

Fill out this document calmly and review all fields before the debtor signs. It is very important that both parties review it to ensure that everything is correct.

If there is something wrong, do not erase any fields, as the promissory note is invalidated in this situation.

Tear it up, throw it in the trash, and fill out a new note from scratch.

Read also: Net Salary Calculation: see how to do it and clear up your doubts!