Missing a repayment can have several repercussions:
- Late Fees and Penalties: Most loan agreements include clauses that impose penalties for late payments. - Damage to Credit Score: Late or missed payments can negatively impact your business credit score, making it harder to secure future funding. - Legal Action: Persistent failure to meet repayment obligations can lead to legal action, including lawsuits or asset seizure. - Loss of Trust: Investors and lenders may lose confidence in your ability to manage the business, affecting future investment opportunities.