Promissory note for overdue balance — when a customer agrees to pay but you want a stronger instrument

Variables to fill in

{{maker_name}}

Customer who owes the money — the 'Maker' of the note. Use legal entity name.

{{maker_state}}

Customer's state of formation or residence.

{{payee_name}}

Your business — the 'Payee' on the note.

{{principal_amount}}

Total amount of the note. Should equal the consolidated overdue balance as of the note date.

{{interest_rate}}

Annual interest rate. 6-12% is common; check usury caps in your state.

{{installment_amount}}

Amount of each scheduled payment.

{{first_payment_date}}

Date the first installment is due.

{{maturity_date}}

Date the final installment is due.

{{governing_state}}

State whose law governs (usually the payee's state).

The template

Select all and copy. Replace the {{double-brace}} placeholders with your details.

PROMISSORY NOTE

Principal amount: {{principal_amount}}
Date: [DATE]
Place: [CITY, {{governing_state}}]

FOR VALUE RECEIVED, the undersigned, {{maker_name}} ("Maker"), a {{maker_state}} entity, hereby promises to pay to the order of {{payee_name}} ("Payee"), the principal sum of {{principal_amount}}, together with interest as set forth below, on the terms below.

1. INTEREST
Interest accrues on the unpaid principal balance from the date of this Note at the rate of {{interest_rate}} per annum, computed on the basis of a 365-day year and the actual number of days elapsed.

2. PAYMENT SCHEDULE
Maker will make consecutive installment payments of {{installment_amount}} each, with the first installment due on {{first_payment_date}} and subsequent installments due on the same day of each succeeding month until the entire principal and accrued interest is paid in full. The final installment, due on {{maturity_date}}, will include any remaining principal and all accrued unpaid interest.

3. APPLICATION OF PAYMENTS
Each payment will be applied first to accrued and unpaid interest, then to principal.

4. PREPAYMENT
Maker may prepay all or any portion of the principal at any time without penalty. Prepayments will be applied to the most-distant scheduled installments unless Maker directs otherwise in writing.

5. DEFAULT
Maker is in default under this Note if:
(a) any installment is not received by Payee within ten (10) days of its scheduled due date;
(b) Maker becomes insolvent, files for bankruptcy, makes an assignment for the benefit of creditors, or has a receiver appointed for Maker's property; or
(c) Maker defaults on any other material obligation to Payee.

6. ACCELERATION ON DEFAULT
On any event of default, the entire unpaid principal balance and all accrued interest become immediately due and payable, at Payee's option, without notice or demand. Maker waives presentment, demand, protest, and notice of dishonor.

7. COLLECTION COSTS
If this Note is placed with an attorney for collection or enforced through any legal process, Maker agrees to pay Payee's reasonable costs of collection, including reasonable attorney's fees, to the extent permitted by the law of {{governing_state}}.

8. WAIVER
No delay or omission by Payee in exercising any right under this Note operates as a waiver of that right. A waiver in any one instance does not constitute a waiver in any other instance.

9. GOVERNING LAW; FORUM
This Note is governed by the law of {{governing_state}}, without regard to conflict-of-law principles. Maker consents to the exclusive jurisdiction of the state and federal courts located in {{governing_state}} for any action arising out of or relating to this Note.

10. ENTIRE AGREEMENT
This Note and any payment-plan or settlement agreement executed contemporaneously constitute the entire understanding between Maker and Payee with respect to the indebtedness described herein.

EXECUTED as of the date first written above.

MAKER:
{{maker_name}}

By: ____________________________________
Name: __________________________________
Title: __________________________________
Date: __________________________________

[STATE-SPECIFIC NOTE: Some states require notarization for promissory notes above certain thresholds, or for personal-guarantor obligations. Check requirements in {{maker_state}} and {{governing_state}} before relying on the instrument; have an attorney review the final form before execution if the principal exceeds $25,000.]

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This template is general-purpose educational content, not legal advice. State law varies and attorney review is recommended before use. Syntharra is not your attorney.

When a customer signs a note and then misses a payment, Syntharra makes the call automatically — under the note's default terms.

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