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Installment Promissory Note
"I need an Installment Promissory Note under Swiss law for a CHF 500,000 business loan to be repaid in monthly installments over 36 months, starting March 2025, with a 5% annual interest rate and secured by company equipment."
1. Identification of Parties: Full legal names and addresses of the Promisor (borrower) and Promisee (lender)
2. Principal Amount: Clear statement of the total amount being borrowed, expressed both in numbers and words
3. Promise to Pay: Explicit promise by the Promisor to pay the Principal Amount plus any interest
4. Payment Terms: Detailed specification of installment amounts, payment frequency, and due dates
5. Interest Rate: Specification of applicable interest rate (if any) and calculation method
6. Payment Application: Order in which payments will be applied (e.g., first to interest, then to principal)
7. Default Provisions: Consequences of missed payments and definition of events of default
8. Acceleration Clause: Conditions under which the entire balance becomes immediately due
9. Governing Law: Explicit statement that Swiss law governs the promissory note
1. Security Interest: Include when the note is secured by collateral
2. Guarantee: Include when there is a personal or corporate guarantee for the debt
3. Prepayment Terms: Include if early payment is allowed or if there are prepayment penalties
4. Late Payment Penalties: Include if specific penalties or fees apply to late payments
5. Assignment Rights: Include if the note can be assigned or transferred to other parties
6. Insurance Requirements: Include if the borrower must maintain specific insurance
7. Notice Provisions: Include if specific notice requirements are needed beyond statutory requirements
1. Payment Schedule: Detailed table showing all installment amounts and due dates
2. Amortization Schedule: Table showing breakdown of each payment between principal and interest
3. Collateral Description: Detailed description of any assets securing the note, if applicable
4. Guarantee Agreement: Attached guarantee document if a third party is guaranteeing the debt
Authors
Banking and Financial Services
Real Estate
Commercial Lending
Private Lending
Small Business
Corporate Finance
Investment Management
Manufacturing
Retail
Construction
Agriculture
Legal
Finance
Treasury
Credit and Collections
Risk Management
Compliance
Commercial Lending
Corporate Finance
Business Development
Investment
Chief Financial Officer
Finance Manager
Credit Manager
Loan Officer
Treasury Manager
Financial Controller
Legal Counsel
Compliance Officer
Risk Manager
Commercial Lending Officer
Business Development Manager
Account Manager
Collections Manager
Corporate Secretary
Investment Officer
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