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Quick Answer When you lend money to a small business — even one owned by a friend or family member — you need more than a handshake and a good feeling. To protect yourself, you need a properly drafted promissory note, a security agreement covering collateral, a UCC financing statement filed with the Pennsylvania Department of State, and in most cases, a personal guarantee from the business owner. Without these documents, you are an unsecured creditor — and if the business fai

A promissory note is a written promise to pay a specified amount within a specific time period. This type of document is used by the...