If you don’t repay your business loan, as with any loan, the lender will seek to recoup their money through other means. Whichever type of loan you have taken out, if you have signed a personal guarantee, the lender can take action against you personally to ensure that they are repaid. This is true of business loans, cash advances or even asset based lending. For unsecured loans, the lender may take legal action to get their money back, enforcing their personal guarantee if necessary. This is because unsecured business loans are not secured against any property. For secured business loans, the lender may seek to repossess the security property, before selling it to recoup their lost funds. If you face difficulty in meeting your repayments, it’s important that you approach your lender immediately and look to come to an agreement. Of course, we try to avoid this by taking extra care during the approval process to ensure that any money borrowed can be repaid. This is one of the key advantages of taking out a business loan with ABC Finance.