A promissory note is a written, signed promise by one party to pay a stated sum of money to another, either on demand or by a set date. At its simplest, it is a formal IOU.
What it contains
A promissory note typically records the amount, the parties, and when and how repayment is due. In modern business lending, these elements are usually built into a fuller facility agreement rather than a separate note.
- It is a clear, written promise to repay.
- It identifies the amount and the repayment terms.
- The detail for your borrowing usually sits in the main agreement.
How this relates to your facility
With Credicorp, the obligation to repay and the full terms are set out in your facility agreement, which is signed on behalf of your company. That document is the authoritative record of what is owed and on what terms.
Credicorp lends only to UK limited companies and LLPs for business purposes and does not take personal guarantees from directors. Credicorp is an exempt business lender, so the Financial Ombudsman Service and FSCS do not apply. Always treat your signed agreement as the definitive statement of your obligations.
See also: What is security on a loan?, What is refinancing?, What does default mean?.