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I Owe You (IOU) Template

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An IOU Form,  “I Owe You”, is a written acknowledgment of debt to another party. An IOU is a simple solution when two parties want to record a transaction without the hassle of complicated paperwork. People that tend to use an IOU are trustworthy and close individuals, typically business partners, friends, or family members.

What is an IOU?

When most people think of an IOU, the thought of a handwritten napkin on it comes to mind. Due to how IOUs have been portrayed in Hollywood, it does not have the greatest reputation as being a legally binding document. However, an IOU can be a powerful binding document when being used as a repayment agreement. As long as there are a lender and borrower in a transaction, an IOU can be used to set the terms of repayment.

Create a powerful and beautiful looking IOU form by downloading our free template or let us help you create a professional IOU form by using our fillable software.

How to Write an IOU Template

Step 1 – Debtor, Creditor, and the Amount

Enter the name of the Debtor/Borrower (John Rogers), the Creditor/Lender (James Smith), and the amount of the loan (in written and numeric form).

Step 2 – Repayment

The next step requires information pertaining to how the loan will be re-payed. In our example, the borrower will pay back the loan with monthly installments until the loan is paid off. If the loan is being paid off with one lump sum payment without monthly installments, simply enter the amount of “$0” instead of $42 like seen in the image. To finish this step, enter the final date in which the loan must be paid and the date in which this IOU form will be signed.

Step 3 – Signatures

In order for any IOU to be legally binding, signatures from both the Lender and Borrower is needed. And in some states, a Notary Public and a Witness is needed to sign off on the IOU as well to be valid. Check with your State to make sure you are aware of the laws.

Step 4 – Notary Public (if applicable)

If a Notary Public is not required in your State, it’s still a good idea to have it done as it will give more protection to both the Lender and Borrower but more so the Lender. The Lender must be present with the Notary when the Notary signs the IOU. To finish, enter the date signed, name of Notary Public, Governing State, and the Notary Public’s signature.


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