What Happens if You Miss One Payment?
Missing one payment will have repercussions, but they’re limited compared to a full default. One missed payment means hurting your credit, dealing with late fees, and paying additional accrued interest.

If your lender calls you to discuss the missed payment, take the call. You might be able to talk it over and work out a one-time fee waiver or forgiveness for the missed payment.

What Happens if You Miss Several Payments?
Missing several payments is a very bad thing. Your loan could go into default, the lender might foreclose on the loan if it is secured, and your credit will be significantly damaged.

Check the terms of your loan to find out when you’ll be considered to be in default and what that will mean for you.
What Are Some Options if You Can’t Pay Back a Loan?
If you can’t repay a loan, reach out to your lender. You may be able to negotiate forbearance or other terms to help you be able to make the payment.
Can you get out of business loans?
In general, you have to pay back what you owe. You can always talk to your lender to see if they’re willing to work with you or write off some loans if you’re in a difficult spot.
In the worst case, you might have to file for bankruptcy.

Why is defaulting on loans bad?
Defaulting on loans is bad because it damages your credit and makes it hard to borrow in the future. It can also put your personal and business assets at risk.
What should you do if you’re at risk of missing a payment?
If you’re at risk of missing a loan payment, contact your lender and let them know the situation. They might be willing to work with you.
What are your options if you can't pay your loan?
If you can’t pay your loan, first, reach out to your lender to determine your options. Then, consider options like refinancing or getting funding from elsewhere. If you can, try to prioritize paying secured debts to avoid foreclosure and losing those assets.
How can you recover from a business loan default?
To recover from default, contact your lender to find a mutually agreeable way to bring your loan current. Also, try to take steps to rebuild your business credit.
Should I file for Chapter 11 Bankruptcy?
Chapter 11 bankruptcy allows your business to restructure or possibly eliminate debts. It’s a complicated process and not great for every situation but could give you a chance to get your feet back under you.


When you take out a loan, make sure you have a plan for how you’ll pay it back. However, even if you have a plan you might wind up in trouble and face default. Do whatever you can to avoid missed or late payments and don’t be afraid to contact your lender to see if they can give you a helping hand.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

More about me