The realistic sequence
| Stage | What typically happens |
|---|---|
| Missed remittance | Automated retry, usually within days |
| Contact | The funder reaches out; this is the moment with the most options |
| Default declared | Per the agreement — often faster than borrowers expect |
| Collection | Direct collection, or the file is placed with an agency |
| Personal guarantee enforced | Personal liability engaged where one was signed |
| UCC enforcement | Claims against business assets acted on |
What a personal guarantee actually exposes
It makes you personally liable for the business debt. The protection an LLC or corporation gives you over business obligations does not extend to what you have personally guaranteed. Most funding in this market carries one, so assume it applies unless your agreement says otherwise.
What to do before it gets there
Contact the funder before the payment fails, not after. A business that calls ahead has options a business in collections does not.
What we can and cannot do
If payments are squeezing cash, the honest levers are reducing what leaves your account each day and stretching the term. Neither makes the balance disappear. Nobody can make an existing obligation vanish, and any offer described that way is misdescribing itself. See MCA refinance.
Common questions
How quickly is a default declared?
Often faster than expected — sometimes within days of a failed remittance, depending on the agreement.
Does my LLC protect me?
Not against anything you personally guaranteed, which is most funding in this market.
Can I still get funding after a default?
It is harder but not automatically disqualifying. Deposits, time in business and what changed all get read.
What is the single best move?
Contact the funder before a payment fails. Early contact preserves options that disappear once a file is in collections.
See what you qualify for
Same-day decision. Applying takes a few minutes and will not affect your credit score.