When to use it
- You covered a friend’s rent, a concert ticket or a vet bill, and they said they would pay you back.
- Someone already owes you money and you want the amount and the payback date confirmed in writing, after the fact.
- A family member is lending you money and you want to show you take repaying it seriously.
- You fronted the full cost of a shared trip or a group gift and one person owes their share.
A filled-in example
When Jordan’s paycheck was delayed, his college friend Alicia covered $1,200 of his October rent. They agree he’ll pay it all back by the end of December, by bank transfer, and Jordan fills in the record himself so Alicia doesn’t have to ask.
Debt Record
Recorded on Oct 3, 2026
Alicia Moreno and Jordan Pike both acknowledge and agree to the following:
Amount: $1,200
Purpose: Money Alicia paid toward Jordan’s October 2026 rent while his paycheck was delayed
Repayment
Jordan Pike agrees to return $1,200 to Alicia Moreno by Dec 31, 2026
Payment method: Bank transfer
Both parties confirm this amount and date as mutually agreed
Alicia Moreno · signature and date
Jordan Pike · signature and date
What you fill in, and why
The app asks for 7 details in 2 short steps: “Who's involved?”, “Debt details”. The ones worth a moment’s thought:
- Amount Owed
- The exact amount, in dollars. It appears twice in the finished record — once as the amount and once in the promise to repay — so both of you see the same figure in both places.
- Common mistake: Rounding. If it was $1,183.40 for the plane ticket, write that; “about $1,200” is an invitation to disagree later.
- What is this for?
- What the money was for, in a sentence. It is the part that separates a loan from a gift or a shared expense when memories fade, and it helps if there is more than one IOU between you.
- Common mistake: Leaving it vague (“money”). Name the month, the bill or the occasion.
- Agreed Repayment Date
- The single date by which the full amount comes back. Pick one the borrower can realistically meet — a missed date is harder on the friendship than a later one. The app requires it to fall after the date the record is made.
- Who owes money?
- Full legal names on both sides, not nicknames. Either person can fill in the record: a borrower who offers to write the IOU is often what makes asking for one feel less awkward.
Before you can save, the app checks: Repayment date must be after the recorded date.
What the signed record shows — and what it doesn’t
It shows
- That both of you agreed this money is owed — not a gift — on the date the record was made.
- The amount, what it was for, and the date it is to be repaid.
- How repayment was meant to happen.
- Who signed, when, and from which device, on the PDF’s certificate page.
It doesn’t show
- That the money was ever handed over. Keep the transfer receipt or a photo of the check with the record.
- Whether any of it has been repaid since. Partial payments are not tracked here — keep the receipts.
- Interest, collateral, or what happens if the date is missed. None of that is part of this record unless you write it in the notes.
When this isn’t enough
- You want to charge interest. This record has no interest field, and states cap how much interest a private lender may charge — check your state’s rules before adding a rate in the notes.
- The money will be repaid in installments over months. This record has one repayment date; a payment plan needs each amount and date written out.
- The amount is large enough that you would want it secured against a car or a house, or enforceable on its own terms. That is a formal loan document, and the place to start is a licensed attorney in your state.
- Gifts and loans between family members can have tax consequences at larger amounts. If you are lending a significant sum to a relative, the IRS has its own rules about gifts and below-market loans. IRS — gift tax basics
How signing works
- You fill in the template in the Agreely app and sign it first.
- You send the other person one link — by text, WhatsApp, email, anything.
- They read the same document in their browser, type or draw their signature, and both of you get the identical signed PDF.
Signatures are captured under the U.S. ESIGN Act and UETA, with a certificate page recording who signed, when, and from which device.
Questions people ask
Is an IOU the same as a loan agreement?
No. An IOU like this one records that a debt exists and when it is due. A loan agreement typically adds interest, a payment schedule and what happens on a missed payment. For a small amount between people who trust each other, the simpler record is often all you need; for a large one, it may not be.
The money was lent months ago. Can I still make a record now?
Yes. Set the date recorded to today and describe when and why the money was lent in the purpose field. The record is then a signed acknowledgment, made today, of a debt both of you agree on.
What if they repay part of it early?
Keep the receipts for each payment. If the remaining amount or the date changes in a way that matters, make a new record for the balance so the latest signed version is the current one.
They won’t sign. Does that tell me anything?
It tells you the two of you may not agree on the debt, which is better to learn now than at the due date. A signing link stays open for 15 days, and the other person can also decline — you will see that in the app.
Why does the PDF carry such a careful notice?
Because debts are where formal requirements matter most. Depending on the amount and your state, a record like this may not meet the wording a formal loan or note would need, so the notice says so rather than suggesting it covers everything.