Free IOU Templates (Word)
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FAQ
Do these IOU templates include any legal protection for lenders?
These templates provide structure and clarity to your agreement, which can help avoid misunderstandings, but they are not legally binding contracts. For enforceable protection—especially for larger amounts—consider consulting a lawyer to review or modify the document. Think of these as starting points to document the promise, not as replacements for legal advice.
Can I use an IOU template to track interest on a loan?
Yes, some templates include fields for interest rates or fees, which can be useful for informal loans between trusted parties. However, if charging interest is part of a formal agreement or involves significant amounts, you may need a promissory note or other document to comply with local laws. Always check your state’s usury rules if interest is involved.
What’s the difference between an IOU for a personal loan and one for a small business?
Personal IOUs are typically simpler, focusing on the amount, repayment timeline, and signatures. Business IOUs may include additional details like collateral, late fees, or consequences for non-payment, depending on the relationship between parties. Choose a template that matches the formality of your agreement—personal loans can use a basic note, while business deals may need a more structured approach.
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