Create Your Promissory Note For Free

  • Icon Australiasuitable for all Australian states and territories
  • Calendarlast updated June 2018
  • Stopwatchunder 5 minutes
Step 1 laptop

Sign Up

Step 2 stopwatch

Complete Online Form

Step 3 document

Sign & Make It Legal

Document Overview

A Promissory Note is a negotiable instrument issued by you, or from you, for the promise to pay a sum of money. It is relatively simple in comparison with the more complex loan agreements, and for that reason, may be a good option to consider as a paper trail that money is owed to you or payable by you. As a simple document, it is a good way for you to create a paper trail of a payment or loan of smaller sum. 

If the Promissory Note contains complex clauses, it may be deemed to be a complex financial instrument and be regulated by the Corporations Act 2001 (Cth). It will be important at that time to seek the assistance of a lawyer.

Use this Promissory Note if:

  • You would like to document that a sum is owed to you; or
  • You would like to document that a sum is payable by you.

What does the Promissory Note cover?

  • Payee and Issuer Details;
  • Sum; 
  • Interest Details;
  • Transferability; and
  • Payable Details. 

Other names for Promissory Note include:

  • IOU; 
  • Payment on Demand; and
  • Payment on Arrival.

What is the difference between a Promissory Note and a Loan Agreement?

A Promissory Note is a simple negotiable instrument issued by you, or from you, for the promise to pay a sum of money. A promissory note is often one-sided only imposing obligations on the borrower. Unlike a promissory note, a loan agreement is more complex, and imposes obligations on both parties, which is why both the borrower and lender must sign the agreement.

Is a promissory note a contract?

A promissory contains a promise to pay an agreed sum of money and is treated as a contract between two parties. Once the promissory note is signed by the issuing party, the payer (borrower) is are under a legal obligation to make the payment to the payee (lender).

Can a promissory note made payable to more than one payee?

No, there can only be a single payee. A promissory note is an agreement that is made between two parties, the borrower and and lender.

What is required to make a promissory note legal?

Once the issuing party (the borrower) has dated and signed the promissory note, it hold a legal and binding effect on the borrower to pay back the loan. Depending on whether it is a personal or corporate loan, certain consumer credit and corporate laws may apply.

Is it legal to have a promissory note with no interest?

Yes, the Lender can choose whether or not to charge interest. If the Lender decides to charge interest, they can pick how much interest to charge but it must be a reasonable rate. Depending on the amount debt owed, the interest rate often varies from 10-15%.

Want A Lawyer To Draft Your Promissory Note?

Get a Quick Quote

Let us find you a lawyer who can draft a Promissory Note specific to your needs. Our Quick Quotes technology saves you time and gives you fixed-price quotes from over 700+ expert lawyers.

1. Submit quote request

Fill out the quote request form. Provide as much detail as possible so we can source you the most accurate quotes.

2. Compare Fixed-Price Quotes

Save time shopping around town. You will receive fixed-price quotes from our 700+ expert lawyers.

3. Hire the Best Lawyer

Once you've engaged the lawyer of your choice they will begin work on your job.

Step 1 laptop

Submit Quote Request

Step 2 stopwatch

Receive Fixed-Price Quotes

Step 3 document

Connect With Your Lawyer

LawPath provides legal documents for:

Small-medium businesses

Small-Medium Businesses


Corporate & Enterprise

In-house legal

In-House Legal





Want to know if LawPath is  right for you?
Speak to a consultant on 1800 529 728

Trusted By