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Try to sign loans agreements that allow you to pay the remaining balances off early or prior to the final payment date. If you do not understand the language or doubt the salesman, ask your lawyer to describe any obvious ‘pitfalls’ at least on the larger loans or longer term loans you are about to sign. Before signing all loans, understand the number of payments, fixed payment per month, amount financed and any penalties for prepayment. Ensure only owners sign personal guarantee paragraphs included at the bottom of any leases, loans or credit agreements. No employee with no interest in the company should ever sign a personal guarantee.
Take exception to that part of the lease you do not want — cross it out. Mark out terms for which you do not agree and turn in the submission. Remember that if the vendor can get you to sign the entire agreement without any exception, he is totally covered by the language written by his well-paid lawyer. Do not hesitate to cross out that with which you disagree. In the future, if your company is doing well financially and you can afford to do it, you might want the option to pay off the loan and avoid all future interest. Try and insist on this option before signing the final loan agreement.
