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Commercial Promissory Note Generator

Create a professional commercial promissory note with customizable terms and interest rates

Disclaimer: This tool generates a promissory note template based on your inputs. While designed with California commercial law in mind (including Cal. Civ. Code §3289), you should consult with a licensed California attorney before executing any legal agreement. LegalCollects.ai does not provide legal advice.
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Maker Info
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Payee Info
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Note Details
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Terms
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Preview

Maker Information

Enter the information for the maker (borrower)

Company name is required
Contact name is required
Address is required
City is required
State is required
ZIP code is required
EIN is required

Payee Information

Enter the information for the payee (lender)

Company name is required
Contact name is required
Address is required
City is required
State is required
ZIP code is required

Note Details

Specify the principal amount, interest rate, and dates

Principal amount is required
Interest rate is required
California Statutory Rate: Per Cal. Civ. Code §3289, the statutory default interest rate is 10% per annum if not specified in the contract.
Note date is required
Maturity date is required
Note type is required

Terms & Conditions

Configure payment terms, fees, and special provisions

Payment schedule is required
Late fee percentage is required
Grace period is required
Governing law is required

Review Your Promissory Note

Review the generated document below. Make changes in previous steps if needed.

Generated Promissory Note

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Frequently Asked Questions

What is a promissory note? +
A promissory note is a written promise to pay a specified amount of money to a creditor on a specific date or on demand. It's a negotiable instrument commonly used in commercial lending and is enforceable under the Uniform Commercial Code (UCC).
What is California's statutory interest rate? +
California Civil Code §3289 sets the statutory rate of interest at 10% per annum for contracts that don't specify an interest rate. This rate applies to both contractual and non-contractual obligations in California.
What's the difference between demand and term notes? +
A demand note is payable whenever the creditor requests payment (on demand). A term note specifies an exact maturity date when the full balance is due. An installment note requires periodic payments over time until the note is paid off.
Do I need an attorney to use this tool? +
While this tool generates a professional template, we strongly recommend consulting with a licensed California attorney before executing any promissory note. An attorney can ensure the document complies with all applicable laws and your specific situation. LegalCollects.ai does not provide legal advice.
What does an acceleration clause do? +
An acceleration clause allows the lender to demand immediate repayment of the entire outstanding balance if the borrower defaults on a payment. This can be a powerful enforcement mechanism in case of default.
What is a personal guaranty? +
A personal guaranty is a personal promise by an individual (often a business owner or principal) to repay the loan if the company/primary borrower defaults. It creates personal liability and is a significant commitment.
Is this template specific to California? +
This template is designed with California commercial law in mind and includes California-specific references (Cal. Civ. Code §3289, §1717). However, you can select other states for governing law. Always consult with a local attorney for your jurisdiction.