Default
Default is a defined term in the agreement. Knowing how it is defined, and acting early, changes the outcome more than almost anything else.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, here is the short answer: Default is defined in the agreement, and acting before the second missed debit changes the outcome. Call, document and ask for a modification in writing.
The list varies. The agreement sets the definitions, the cure periods and the remedies.
| Stage | What happens |
|---|---|
| Notice | Written notice of the breach |
| Cure window | A period to fix it, if the agreement provides one |
| Acceleration | The remaining balance may become due |
| Collection steps | Legal steps, including claims against guarantors where applicable |
Funders can work with an owner who calls first, and rarely with one who is silent.
Reduced payment, a pause or a restructure, whatever is agreed in writing.
Changing banks without a plan can create a second default.
If a notice arrives, an attorney can review options.
See reconciliation, consolidation and funding after a defaulted advance.
An owner misses one debit and silently hopes it will pass. Two weeks later a second bounces and the agreement allows acceleration. A neighbor in the same spot calls on day one, sends statements and gets a written modification of two weeks at half payment. The product was the same. The difference was the call.
Source: Merchant Fund Express.
Sometimes, if addressed early through a modification, a payoff or a replacement facility. Source: Merchant Fund Express.
Yes. The tier sheets list prior defaults as a bar on the revenue-based tier. See requirements.
It depends on the guarantee language. See personal guarantee.
Gather the agreement, your statements and a list of what you owe, then speak to the funder and, if needed, an attorney.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
