 TITLE: Everything You Need to Know About Business Auto Loans CONTENT: What Happens if I Default on the Payments?\n------------------------------------------\nIf your business auto loan doesn't require a personal guarantee, and your company defaults on the debt, the lender can repossess the vehicle—potentially dinging your business credit history. In this situation, though, your personal credit history can make it through the process unscathed.\nWhen you've provided a personal guarantee and your business defaults on the debt, the lender or a debt collection agency may choose to report the debt to the consumer credit reporting agencies, which will affect your personal credit report and scores.\nIf you can manage to pay back the loan using personal assets, you can minimize the negative effect the defaulted debt has on your personal credit scores. If you can't, the default can damage your scores and make it difficult to get approved for credit in the future. END