Promissory Note

August 24, 2013  |     |     |   0 Comment

A Promissory Note is a legal financial instrument in which the issuer of the note promises to pay a sum of money to the payee as agreed to by both parties. This could be a lump sum at a future date or regular scheduled payments made over time. The specific amount and terms are agreed to by both parties. 

In website sales, the promissory note is often introduced where seller financing is offered by the seller to the buyer of the website. The buyer then issues a promissory note to the seller promising to make scheduled agreed-upon payments to the seller over a defined period of time.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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