A Washington unsecured promissory note acts as a binding legal document where the borrower doesn’t offer collateral and promises to repay a specified sum of money, either in a single lump sum or periodic installments, with agreed-upon interest. This note reduces potential disputes because it serves as a formal record and eliminates ambiguity about the repayment conditions.
Lenders who use this note don’t expect collateral from the borrower, so they typically issue it to borrowers they know on a personal level. If the lender doesn’t have a relationship with the borrower, they should have proof of the borrower’s stable financial history to increase the chances of repayment.
