SIMPLE can be considered boring but sometimes simple is exactly what we need. I recently met with a prospective investor (virtually, of course) who had gotten badly burned in the stock market. After licking his wounds he decided he was ready to invest again, but after his bad experience he wanted a simple, short-term investment that would allow him to sleep better at night. A promissory note seemed like the best fit.


When I explained what a promissory note was, he remarked that it sounded a lot like a bond, and he was not wrong. A promissory note, also called a P note, pro-note or even just a note, is essentially a contract between two organisations, or between an issuer and a lender or investor, governing a one-time loan.