What is a promissory note?

If you're asking what is a promissory note, you've come to the right place for an answer. A promissory note is a legal binding contract between a lender and a borrower. The promissory note, (often misspelled as promisary note), has the terms and conditions of a loan including the amount and when and how a loan will be repaid.

A promissory note can be the basic backbone of a lease providing the direct terms and conditions and naming the parties involved. It is a signed document that is a binding promise to repay the amount conveyed in a loan. In the case of an equipment lease or leasing a copier, the loan is in the form of equipment or gear.

Typically, there is an upfront deposit or down payment and then the rest of the money owed in a transaction is guaranteed by the promissory note.