Once a loan goes into default, the lender will attempt to collect on the full debt that is owed. This may mean turning your debt over to a collection agency. If your loan was personally guaranteed or if you’re a sole proprietorship, it may also mean that your personal credit score can be damaged as well as your business credit score. Both of these can severely affect your ability to receive credit in the future. If you’re in danger of defaulting, be sure to contact your lender in hopes of working out a manageable payment plan.