Default. The failure to repay a loan according to the agreed terms.

Commercial Loan Default: A construction company borrowed funds to complete a project but experienced delays and cost overruns. When it couldn’t make the monthly payments according to the agreed-upon loan terms, it defaulted on the loan, prompting the lender to pursue collection actions.

Invoice Default: A staffing agency provided services to clients, invoicing them monthly. After several months of timely payments, the client stopped paying without prior notice or agreement to defer payments. This failure to pay according to the terms constitutes a default.

Consumer Loan Default: An individual takes a personal loan to finance a car purchase. If they miss several consecutive monthly payments without communicating with the lender or restructuring the debt, they default on the loan, which could lead to repossession or legal action.

Lease Default: A retail business leasing space in a mall fails to pay rent for several months due to a downturn in sales. This non-payment violates the terms of their lease agreement, resulting in a default that may lead to eviction or a legal claim for unpaid rent.