What should I check before signing a long-term lease or other fixed commitment?

List the deposit, instalments, setup costs, service charges, maintenance, insurance and any end-of-term payments. Check whether the quoted figures include VAT and whether you can recover it. For premises, include fit-out costs, business rates and potential repair or reinstatement obligations. Identify how prices can increase, whether there is a minimum term and what happens if you want to leave early. A low monthly figure can hide a much larger total obligation. Ask whether the commitment includes a personal guarantee and obtain legal advice on the wording where needed. Keep the commercial proposal and contract together so your assessment reflects the actual terms rather than the sales headline.

Put the payment dates into a cash forecast alongside wages, suppliers, tax and borrowing repayments. Test what happens if sales are lower, collections are slower or the investment takes longer to generate income. Look at the effect on profit separately from the bank position, and compare sensible alternatives such as a shorter term or staged investment. Lease accounting can also affect the balance sheet, depending on the reporting framework, so the monthly bank payment may not tell the whole accounting story. CASS can help assess the financial impact and the cash headroom you need. A solicitor should review contractual obligations and exit provisions before you sign, particularly where the commitment is substantial.