“I Owe You(s)” or IOUs are often thought of as informal loan agreements, but both the lender and the borrower can benefit from having a written and signed agreement. Sometimes IOU Forms are called Debt Acknowledgment Forms, but they perform the same function. Use the IOU Form document if:
You are loaning a person money and want a record of the agreement.
You are accepting a loan from someone and want the terms in writing.
The loan includes interests and payment information that needs to be outlined.
A signed IOU Form shows the lender that the borrower is, in good faith, planning on paying back the loan. And if they don't, they have a legal document that can be used to recover what is owed to them. Other names for this document: I Owe You Form, Debt Acknowledgement Form