How to Write a Business Plan

180 | HOW TO WRITE A BUSINESS PLAN

exAmple 1:

Promissory Note

Robert Lee of 1411 South St., Homer,

Alaska, and Gertrude Fox of 123 Main St.,

Fairfax, Alaska, agree that Gertrude Fox

hereby lends Robert Lee the sum of Fifty-Six

Th ousand ($56,000) Dollars to be repaid on

the following terms:

1. Principal and interest of 10% per year
   will be paid in equal monthly installments
   on the fi rst day of each month beginning
   the fi rst day of September 2010 and
   continuing through the fi rst day of August,


2. 
   


3. On September 1, 2011 the entire
   unpaid balance of principal and interest
   shall be due and payable in full.


4. Should Robert Lee fail to pay an
   install ment on the date due, as set out in
   Paragraph 1 of this agreement, the whole
   sum of the principal and interest then
   outstanding shall, at the option of Gertrude
   Fox or any subsequent holder of this note,
   immediately become due and payable.


5. Should Robert Lee fail to meet any
   condition of this agreement, and should
   Gertrude Fox or any subsequent holder
   of this note take legal action to collect
   it, Robert Lee shall be responsible for all
   attorneys’ fees and costs.

Date

Robert Lee

Date

Gertrude Fox

exAmple 2:

Promissory Note

$8,639.00 July 30, 2010

For value received, the undersigned

promises to repay to Sebastian Grazowtski,

of New City, Oregon, the sum of EIGHT-

THOUSAND SIx-HUNDRED AND THIRTY-

NINE DOLLARS ($8,639.00) including

interest at 12% per year. Th is money is to be

paid in equal monthly payments of $315.00

(principal only) commencing on September

1, 2010 and continuing until November 1,

2011, at which time the monthly payments

will increase to $440.61 per month until the

entire balance of principal and interest is

paid.

Should default be made in the payment

of any installment when due, then, at the

option of the holder of the note, the entire

amount of the principal and interest shall

become immediately due and payable. In

the event of any default on this note, the

holder shall be entitled to recover all costs

of collection of same, including reasonable

attorneys’ fees and costs.

Date

Sebastian Grazowtski

Date

Virginia Woo