An IOU, or "I Owe You," is a written agreement between two individuals or entities in which one party agrees to pay the other party a sum of money at a future date. IOUs are often used when one party does not have the cash on hand to pay the other party in full, and they can be either secured or unsecured. A secured IOU is one in which the borrower pledges collateral, such as a car or house, to the lender in case the borrower is unable to repay the loan. An unsecured IOU does not have any collateral attached to it. What is an example of an IOU? An example of an IOU would be if you borrowed money from a friend and then wrote them a note promising to pay them back. What is meant by promissory note? A promissory note is a legal document that contains a written promise to pay a certain amount of money to a specific person or entity. How do you write a simple IOU? Assuming you would like to write an IOU for a personal loan:
I, (insert your name), promise to pay (insert name of person you are borrowing from) the sum of (insert amount) dollars on (insert date).
Signed,
(insert your name) Is IOU considered cash? IOUs are not considered cash. IOUs are essentially a debt that one party owes to another. The party who owes the debt is typically responsible for paying interest on the IOU. Does IOU stand for anything? No, "IOU" does not stand for anything. It is simply a term used to describe a debt or an informal promise to pay someone back.