Q: Can my Corporate vehicles be effected (repo) if there is a default on our corporate credit cards?

A: Your best answer to that question starts with the wording, particularly the default provisions, of your Security Agreements with each lender. Often, one of the provisions enables the secured lender to declare a default and accelerate the debt "if/when the lender feels insecure". A default on credit card debt probably qualifies as a trigger event for the lender to "feel insecure".

Results may differ with different lenders. In this environment, most lenders just want money, not used cars, not real estate or other collateral, and not the maintenance/upkeep or prepare for sale out of pocket costs that go with repos.

Talk to your lender! A hallmark of the debtor in trouble is that the debtors go quiet, as if in a bunker, and they often stop answering the phone or opening the mail because it's all just bad news. The lender has few options, other than a few collecting phone calls or letters, short of foreclosure through some lawyer. Lenders/financial institutions hate to spend money; but they smile when cash comes in the door (through loan repayments, or deposits, etc.) Most lenders really want a "performing asset", e.g., a loan that pays every month, that looks good on periodic financial reports, and thus tends to raise stock prices.

The debtors, usually, are the ones with fewer rules, and craft debt solutions with any lender that the lender probably can't generate. Besides, a troubled loan, e.g., one in default, is a thorn in the side of the responsible VP at the lender, and his supervisor is expecting that guy to come up with a solution. A debtor's proposal for cure is almost always welcome by that V-P, whether it flies or not. Be prepared, of course, to negotiate.

At the very least, a debtor's proposal buys time. In itself, sometimes, the passage of time enables a debtor to sweeten a proposal or do a pay-off, or sale.

Like all "legal documents", Security Agreements were drafter by lawyers. Have an experienced lawyer licensed in your jurisdiction review and explain your rights under the existing documentation, then use that representative to spearhead your dealings with your banks.