Confirm the purpose, amount, term and total cost. Understand the payment dates and whether the balance will reduce as expected throughout the schedule.

Read the security, guarantee, early repayment and late-payment provisions. Ask for clarification where wording or a charge is unclear.

Compare the commitment with realistic cash flow and retain a copy of the agreed terms. A review is most useful before obligations are accepted.

Key takeaways

  • Confirm the purpose, amount, term and total cost.
  • Read the security, guarantee, early repayment and late-payment provisions.
  • Compare the commitment with realistic cash flow and retain a copy of the agreed terms.