Immediate Contact: The MCA provider's collections team will initiate frequent, persistent calls and emails to demand payment.

UCC Liens: The provider likely filed a Uniform Commercial Code (UCC-1) lien against the business's assets when the advance was initially funded. Upon default, this lien becomes actionable, allowing the provider to potentially seize business assets like equipment, inventory, or accounts receivable to cover the debt.

Personal Guarantee Enforcement: Many MCA contracts require a personal guarantee from the business owner. This makes the owner personally liable for the debt, potentially putting their personal assets (home, personal bank accounts, etc.) at risk of seizure in a lawsuit.

Confession of Judgment (COJ): In some jurisdictions, the business owner may have signed a Confession of Judgment as part of the initial agreement. A COJ allows the MCA provider to obtain a court judgment against the business without a trial, significantly speeding up the process of seizing assets or freezing accounts. (Note: some states, like New York, have restricted the use of COJs).

Credit Damage: While timely MCA payments don't typically help build business credit, defaulting can severely damage both the business's credit profile and the personal credit of the guarantor, making future financing difficult to obtain.

Lawsuits and Legal Fees: If a COJ isn't used, the provider can sue the business and the owner (if a personal guarantee exists) for breach of contract. If the provider wins, the business owner will be responsible for the debt plus significant legal fees and penalties.