Loan Default
A failure to meet the repayment terms of a loan or advance, such as missing payments, which can trigger penalties, collection efforts, or legal action.
What officially constitutes a default, and what happens next, varies by lender and loan agreement, some allow a grace period or forbearance before declaring default, while others act more quickly, especially on agreements with strict remedies like a confession of judgment.
Understanding a loan’s specific default provisions before signing, not just the rate and payment amount, is one of the more overlooked but important parts of comparing financing offers.
Related Terms
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.