A note is kind of an affidavit or written and signed acknowledgment of the fact that the signer owes money to the mentioned creditor in the note and he agrees to pay back his loan on request or demand from the creditor. A note or commonly known as a promissory or demand note serves the same purpose as loan agreement but it’s less formal and people use promissory notes only for personal purposes. For example, a friend lends money to another friend and due to their personal relationship, they don’t need to go through the trouble of signing a loan agreement but they can also use the promissory note.
Introduction to the Receipt of Note for Collection:
We have described above that a note is kind of a loan agreement as it serves the same purpose but has less legal value and formality. This way when a company lends money to another company or a partner in a corporation lends money to another partner, they don’t sign the loan agreement. Instead, they sign the promissory note in which the borrower acknowledges that he has in fact borrowed money from the creditor and he agrees to pay back the debt on demand from the creditor. Once this note is signed by the debtor, he sends it to the creditor for his collection and either he goes in person to submit the note or sends someone else to submit the note on his behalf.
In either case, once the creditor receives the note either by him or someone else receives the note on his behalf, they are required to issue a receipt to the debtor in order to verify and acknowledge that they have received and collected the promissory note. This receipt then provides legal help to the creditor and debtor in case of any dispute in future. There are many methods or ways to issue the receipt for note for collection. For example, the receiver can issue a computer generated receipt with the particulars or he can prepare the receipt by hand by filling the particulars on the form. Usually companies don’t issue computerized receipts for collection notes but create the receipt on the official letterhead of the company. In either case, this receipt can be entered in the official record of the company and it can also be used for legal purposes in future i.e. in case of law suit against any party.
Promissory note template you can download below helps in Receipt of Note for Collection.
Key elements to include in the Receipt of Note for Collection:
- Name of the person who borrowed money (debtor) with complete address
- Name of the creditor with complete address
- Date when the promissory note was signed by the debtor
- Type of note i.e. promissory note, demand promissory note etc.
- Date when the note was received by the creditor
- Name of the person who received the note on the above said date
- Reference number of the receipt for record purposes
- Date when the receipt for the note is issued
- Signature of the person who received the note and issued the receipt
Here is preview of a Free Sample Receipt of Note for Collection created as fill-able PDF Form,
Here is download link for this Receipt of Note for Collection,