Startup Funding Espresso -- Promissory Notes
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. For family and friends funding, sometimes a promissory note is used to set up a loan. Here are some key points to consider in reading a promissory note: The note summary section establishes the relationship between the borrower and the lender, the date of the note, the total loan amount, and the agreed-upon interest rate.\xa0 The terms of repayment section defines how the loan will be repaid. The late fee options typically include a late fee penalty. This clause documents either a fixed amount, such as $100 in addition to the current payment due, or a percentage of the payment due such as 1% per week. The prepayment option may help the lender as well as the startup. For example, follow-on accredited investors might prefer a loan to be paid off prior to closing their investment deal. Family and friend loans are intended to be more supportive, so you may choose language that allows time to \u201cremedy\u201d the default within X number of days or weeks.\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of