IOU Agreement Template for Netherlands

An IOU Agreement, known in Dutch law as a "schuldbekentenis," is a written promise to repay borrowed money or settle a debt. It's a simple but legally binding document that clearly states who owes what to whom, including the specific amount and when it needs to be paid back.

Under Dutch civil law, while IOUs don't need complex legal language to be valid, they must include basic details like both parties' names, the debt amount, and payment terms to be enforceable. Many Dutch businesses and individuals use IOUs for informal loans or payment arrangements, though for larger amounts, a more detailed contract (onderhandse akte) is usually recommended.

Use an IOU Agreement when lending money informally to friends, family members, or business associates in the Netherlands. This document proves especially valuable for short-term loans without complex terms, typically ranging from €500 to €5,000, where a formal bank loan isn't practical or necessary.

The agreement becomes essential when tracking repayment schedules, preventing misunderstandings about loan terms, or providing evidence for tax authorities. Dutch law recognizes these simple written agreements as legally binding, making them perfect for situations like emergency cash advances, small business arrangements between trusted partners, or splitting large purchases with payment plans.

• Basic Promissory Note: Simple one-page document stating loan amount, payment date, and basic parties' information - ideal for personal loans under €1,000
• Installment IOU: Includes structured payment schedule and terms for larger amounts paid over time - common in small business arrangements
• Secured IOU: Adds collateral provisions to guarantee repayment - typically used for higher-value private loans
• Interest-Bearing IOU: Specifies interest rate and calculation method according to Dutch usury laws - popular for longer-term private lending
• Digital IOU: Electronic version with digital signatures, compliant with Dutch e-signature regulations - increasingly used for remote transactions

• Private Lenders: Individuals lending money to friends, family, or associates who need a simple but legally binding record of the debt
• Small Business Owners: Entrepreneurs documenting short-term loans between business partners or informal investors
• Borrowers: People receiving loans who need to formalize their repayment commitment under Dutch civil law
• Financial Advisors: Professionals helping clients structure and document private lending arrangements
• Tax Professionals: Accountants and advisors using IOUs to track and report personal or business lending for tax compliance

• Basic Details: Gather full legal names, addresses, and contact information for both lender and borrower
• Loan Terms: Determine exact amount, currency, interest rate (if any), and complete repayment schedule
• Payment Method: Specify how payments will be made and tracked (bank transfer, cash, or other accepted methods)
• Default Provisions: Define consequences for missed payments under Dutch law
• Signatures: Prepare for both parties to sign, with space for date and witness signatures if needed
• Documentation: Keep copies of identification documents and any supporting financial records

• Party Information: Full legal names and addresses of both lender and borrower, written exactly as they appear on official ID
• Loan Details: Precise amount in euros, date of lending, and complete payment terms
• Payment Schedule: Clear timeline for repayment, including specific due dates and installment amounts
• Interest Terms: Any applicable interest rate, calculation method, and total amount to be repaid
• Default Clause: Consequences of missed payments under Dutch civil code
• Signatures: Dated signatures of both parties, with optional witness attestation
• Governing Law: Statement confirming Dutch law applies to the agreement

An IOU Agreement differs significantly from a Bond Purchase Agreement in several key ways. While both involve financial obligations, they serve distinct purposes in Dutch financial law.

• Formality Level: IOUs are typically informal documents for personal or small business loans, while Bond Purchase Agreements are formal financial instruments used in corporate or institutional settings
• Legal Complexity: IOUs contain basic repayment terms and simple conditions, whereas Bond Purchase Agreements include detailed provisions about interest rates, transfer rights, and security arrangements
• Regulatory Requirements: IOUs need minimal regulatory oversight, but Bond Purchase Agreements must comply with Dutch financial market regulations and AFM requirements
• Transferability: IOUs are usually non-transferable personal promises, while bonds under a Bond Purchase Agreement can be traded on secondary markets