If you miss a payment that is known as defaulting on your loan. When a borrower defaults on a secured loan, the lender could have the right to repossess the watercraft being held as security. The repossession procedure does not always commence after one missed payment. There is a process which is usually adhered to under these circumstances. It may initially involve reminders from the lender in regard to the missed payment(s) and further follow-up by phone or other means. After multiple missed payments a loan is deemed in default and repossession procedures are commenced by the lender. If you normal repayments are resumed and the missed payment made, no further action may be applied by the lender. Missed payments are usually recorded in your credit history and that will reflect negatively on your credit profile which may impact future loan applications. Fees, penalties and additional interest may also be incurred.