INC. FEATURE: Writing a Promissory Note? Here’s What You Need to Know
Read David Bain’s feature in Inc. on writing promissory notes for early-stage companies. These agreements can play a critical role in helping businesses secure the capital they need to grow.
“You have to spend money to make money, as the old saying goes. But sometimes you have to borrow money to spend money, too.That’s why entrepreneurs often look to raise outside funding in pursuit of growth—and, especially when pursuing early-stage “friends and family” funding, do so using promissory notes. Essentially just a legal document that structures a loan between two parties, a promissory note is, according to experts, the business world’s main means of issuing early-stage debt. The Securities and Exchange Commission has compared them to IOUs.“It’s really the most important legal document that establishes the relationship between the lender, or the investor, and the company,” says corporate lawyer David Bain.” Click below to read the article.
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