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Demand Note
Clearly outline repayment terms for loans payable on demand with this Demand Note Template.
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Demand Note Template
This Demand Note (“Note”) is entered into on [Date], by and between:
Lender:
Name: __________________________
Address: __________________________
Email: __________________________
Phone: __________________________
Borrower:
Name: __________________________
Address: __________________________
Email: __________________________
Phone: __________________________
Collectively referred to as the “Parties.”
1. Principal and Interest
The Borrower promises to pay the Lender the principal sum of $[Amount], with interest at the rate of [Interest Rate]% per annum, calculated on the unpaid balance until paid in full.
2. Repayment on Demand
The total outstanding balance of this Note shall be payable in full upon demand by the Lender.
The Lender shall provide the Borrower with [X] days written notice prior to requiring full repayment.
3. Optional Periodic Payments
The Borrower may make voluntary payments of principal and interest at any time before a demand is made by the Lender. Such payments will be applied first to accrued interest, then to principal.
4. Default
The Borrower shall be in default if they:
Fail to pay the amount due within [X] days after the Lender’s written demand.
Become insolvent, file for bankruptcy, or otherwise breach this Note.
Upon default, the Lender may seek legal remedies, including collection of the full balance and enforcement of any collateral agreements.
5. Security (if applicable)
This Note is:
☐ Secured by collateral described as [Describe Collateral]
☐ Unsecured
If secured, the Lender may enforce their rights to the collateral upon default, in accordance with applicable law.
6. Prepayment
The Borrower may prepay this Note in whole or in part at any time without penalty.
7. Governing Law
This Note shall be governed by and construed in accordance with the laws of [State/Country].
8. Notices
All notices required or permitted under this Note shall be in writing and delivered personally, sent by certified mail, or emailed to the addresses provided above.
9. Entire Agreement
This Note constitutes the entire agreement between the Parties and supersedes all prior agreements or understandings related to the loan.
Signatures
Lender Signature: ____________________________ Date: _________
Printed Name: _________________________________________
Borrower Signature: ____________________________ Date: _________
Printed Name: _________________________________________
Details
Learn more about
Demand Note
DEMAND NOTE FAQ
What is a Demand Note?
A Demand Note is a type of promissory note where the borrower agrees to repay the loan whenever the lender demands it, rather than on a fixed schedule. It offers flexibility for both parties and is commonly used in short-term or informal financing situations.
Why is a Demand Note important?
It provides the lender with maximum control over repayment, ensuring they can call the loan when necessary. It also creates a legal record of the loan terms, protecting both the borrower and lender in case of disputes.
When should you use a Demand Note?
Use a Demand Note for short-term loans, family or friend loans, business cash advances, or situations where repayment timing cannot be predetermined.
What should a Demand Note include?
Essential elements include the principal amount, interest rate (if any), repayment terms, notice requirements for repayment, default provisions, and governing law.
How does a Demand Note differ from a Term Note?
Unlike a Term Note, which has a fixed repayment schedule, a Demand Note can be called in full at any time by the lender with proper notice.
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