A promissory note (Note) is a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand. It is a security as are all the other labels like Promissory Notes, Convertible Debt, Preferred etc., etc., etc. The security is repaid with a return on the stated sum (Return). Don't get confused by the words and/or acronyms and/or 'fast chat' used by "experts." There are only three things than can happen to the Return: it goes up, down or stays the same. Regardless of what the Note is called you simply need to know how to calculate how much the Return will cost you under your worst, best and likely case scenarios. The rest of the yatta yatta is hocus pocus to rip you off aka get more of your money. A few KISS, non-inclusive Rules:
"In tribal times, there were the medicine men. In the Middle Ages, there were the priests. Today, there are the lawyers and investors. For every age, a group of bright boys and girls, learned in their trades and jealous of their learning, who blend technical competence with plain and fancy hocus-pocus to make themselves masters of their fellow men. For every age, a pseudo-intellectual autocracy, guarding the tricks of the trade from the uninitiated, and running, after its own pattern, the civilization of its day." (adapted from Fred Rodell, Yale,Woe Unto You, Lawyers!)
If by some chance you are unable to pay back a promissory note, then your teammates and you will be in hell for a while - just chill, keep fighting, walking and don't give up -you will still be breathing. Also, be careful using the word 'gentleman' until you have seen somewhat act in a reasonable manner when they are about to lose money.
All and all, it's better not to use other people's money particularly when that 'other person' is using 'another person's money'. Trust me.