Stop using fax & print - sign electronically in seconds!

Read and use this free lump sum promissory note below. You can also download a free editable version.



Date: _________________________

For value received, the undersigned, _____________________________, (“Borrower”), located at ________________________________________, __________________________________, ______________________, promises to pay to the order of _____________________________ (“Lender”), located at ________________________________________, __________________________________, ______________________, the sum of $_________, plus interest, accruing at the rate of ______% annually, on the unpaid balance.

1. Payment. Payment shall be made in a lump sum, in-full, principal and interest included, of $__________ by _________________________, (the “Due Date”). All payments shall first be applied to outstanding late fees, then to interest and the balance to the principal amount. Unpaid principal after the Due Date shall accrue interest at a rate of ______% annually until paid.

2. Late Fee. If payment is not made within __________ days as agreed upon in the payment terms, Borrower shall pay an additional late fee of $ __________. This late fee shall be paid as liquidated damages in lieu of actual damages, and not as a penalty. Payment of this late fee shall, under no circumstances, be construed to cure any default arising from or relating to such late payment.

3. Prepayment. The Borrower may prepay this Note, in whole or in part, prior to the Due Date without premium or penalty. All prepayments shall be first applied to outstanding late fees, then to accrued interest and thereafter to the principal loan amount.

4. Acceleration of Debt. If Borrower fails to make any payment under the terms of this Note when due, the remaining unpaid balance and any accrued interest shall become due immediately at the option of Lender.

5. Collection & Attorneys’ Fees. In the event of default of this Note by Borrower, Borrower shall pay to the Lender all costs of collection, including reasonable attorneys’ fees.

6. Default. Borrower will be in default if any of the following events occur: (i) if Borrower does not pay the full amount of each monthly payment when due; (ii) if Borrower is involved as a debtor in a bankruptcy proceeding; (iii) if Borrower becomes insolvent and is unable make the agreed-upon payments; (iv) at the death, dissolution, liquidation or incompetency of the Borrower; or (v) if Borrower makes any untrue statement to the Lender or misrepresentation for the purpose of obtaining or extending credit. In the event of default, this Note and any obligations of the Borrower to the Lender, shall become due immediately, without demand or notice.

7. Severability. If any provision or part of a provision of this Note is held to be illegal, invalid, or unenforceable by a court or other decision-making authority of competent jurisdiction, then the remainder of the provision will be enforced so as to affect the intention of the Parties, and the invalidity and enforceability of all other provisions in this Note will not be affected or impaired.

8. Waiver. Borrower waives presentment for payment, protest, and notice of protest and demand of this Note. The parties acknowledge that no breach of any provision of this Note shall be deemed waived unless evidenced in writing. A waiver of any one breach shall not be deemed as a waiver of any other breach of the same or any other provision of this Note. No failure or delay by Lender in exercising Lender’s rights under this Note shall be considered a waiver of such rights.

9. Assignment. Neither party may assign or delegate its rights or obligations pursuant to this Note without prior written consent of the other. Any assignment or delegation in violation of this section is void.

10. Successors and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding upon Borrower’s successors and permitted assigns.

11. Notice. Any notice required hereunder shall be in writing and deemed to have been sufficiently given when delivered in person, by email, by facsimile, by a recognized national overnight courier service or by certified mail to the address of the respective party above.

12. Execution. This Note may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. Execution and delivery of this Note may be evidenced by electronic means.

13. Governing Law. This Note shall be construed in accordance with the laws of the State of ______________________.

14. Amendment. There are no verbal or other agreements that modify or affect the terms of this Note. This Note may be amended and modified only by a written agreement signed by Borrower and Lender.

IN WITNESS WHEREOF, this Note has been executed and delivered as of the date first written above.

Signed, the __________ day of _________________________, __________.


Borrower Signature

Borrower Printed Name


Lender Signature

Lender Printed Name


Please note that this article is not a substitute for professional legal advice; it does not create an attorney-client relationship, nor is it a solicitation to offer legal advice. We recommend you seek the appropriate legal advice from a practicing attorney licensed in your jurisdiction.

What is a Lump Sum Promissory Note?

A lump sum promissory note is just what is sounds like. Instead of making regular installment payments, the borrower agrees to paying the entire loan back in a “lump sum,” a single payment, on some designated date. The alternative to this is an installment note, where the borrower pays back the loan in regular (e.g., monthly) payments.

When Should You Use a Lump Sum Promissory Note?

A lump sum promissory note is the simplest form of repayment, because the money is all paid back at one time, the end of the note’s term. So there is no checking to see if the monthly payment comes on time and if it meets the required amount. This form of repayment basically requires the least amount of maintenance from the lender.

The lump sum promissory note may be an ideal structure to use when lending money to family and friends, because it also takes the burden off of the borrower to come up with the money right away. So if you’re lending to a family member to start a business, for example, it gives him time to get his business off the ground and start generating income, without having the added financial burden of making payments right away. Or perhaps you’re lending money to a friend to fix her car, and she intends to pay you back at the end of the year when her bonus comes in. A lump sum repayment structure would be ideal for that scenario.

What’s Included in a Lump Sum Promissory Note?

A promissory note with a lump sum repayment structure must include the amount borrowed, the date the loan is to be repaid, and if or what interest is also owed on the note at that time. The note should also address other standard issues, like what happens if the note is not paid on time and if the note is secured by any personal property or real estate.

Other names for this document include: promissory note with lump sum payment, simple promissory note