promissory note

noun

Meaning

A signed legal document containing a written promise by one party to pay a definite sum of money to another party at a specified future date or on demand.

Examples

  • The startup issued a promissory note to its early investors to secure the necessary capital for expansion.
  • Because the buyer lacked immediate cash, they offered a promissory note to guarantee payment for the equipment.

Synonyms: IOU, debt instrument, bond