What Happens When a Company Defaults on a Loan?

 

What Happens When a Company Defaults on a Loan?

What happens when a company defaults on a loan can have serious ramifications. Defaulting on a business loan occurs when a company fails to make payments as outlined in the loan agreement. It starts a chain reaction of events as the lender exercises their rights to get repaid. Here is a detailed look at the consequences companies face when they default on a loan.

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