Promissory Note (Prom Note) is a written promise to pay a specified sum of money to a named recipient at a defined future date. It’s a negotiable instrument that can be sold or transferred to third parties.
Prom notes serve as legal evidence of a debt and can be enforced in court if necessary. They can be used in various contexts, from informal personal loans to formal business financing arrangements.
Simply put, promissory notes are essential tools for documenting financial agreements and ensuring clarity and accountability between borrowers and lenders.
Substituting the paper originals are digital promissory notes that let businesses make binding payment promises without printing, signing, and shipping paper documents across borders.
They dramatically speed up financing by allowing lenders to verify, process, and fund loans in minutes rather than weeks, putting cash in businesses’ hands precisely when they need it.
Enigio’s trace:original
- enables the creation of digital promissory notes under MLETR and contract law using ITFA’s ePU standard;
- eliminates paper limitations, while preserving the benefits of promissory notes while removing the drawbacks of paper-based processes.