Document the economic agreement
A workable note identifies the parties, principal amount, currency, interest method and rate, issue date, maturity, payment dates, payment instructions, prepayment rights, default events, governing law, notices, and signatures. If collateral is involved, the collateral documents, perfection steps, and priority analysis must be addressed under the relevant law.
Run the agreement as a system
Keep the executed document, disbursement record, payment schedule, balance calculation method, payment receipts, amendments, and communications about waivers or rescheduling. Changes should be recorded in signed amendments rather than buried in informal messages. Reconcile the ledger to actual payment activity.
Prepare for the next reviewer
Future lenders, buyers, auditors, and tax advisers need to answer basic questions quickly: Was this debt authorized? Is it current? Is it secured? What is the payoff amount? Are there defaults? Clear records reduce transaction friction and prevent outdated balances from being presented as fact.