Cure Period: Meaning in a Merchant Cash Advance
A cure period is a window of time a contract gives you to fix a breach before it becomes a full default. Some MCA agreements include one for certain problems; many don't, or keep it very short.
What does cure period mean?
If you miss a requirement, such as sending statements on time or keeping the account in good standing, a cure period gives you a set number of days after notice to set it right. Fix it within the window and the contract continues as if nothing happened.
Why does cure period matter to your business?
A cure period can be the difference between a quick fix and an accelerated balance. If your contract has one, know how long it is and what triggers it. If it doesn't, act even faster when something goes wrong, because the funder's remedies can start right away.
How do you count the cure period?
Check whether the cure period counts calendar days or business days, and when it starts: on the breach, on notice or on receipt.
What if there's no cure period?
Many MCA agreements go straight from breach to default with no formal window. In that case, speed is everything. The moment you realize something's wrong, like a closed bank account or a missed statement request, call the funder and put the fix in writing. Funders often give informal time to merchants who reach out first.
How do you use the time well?
If you do get a cure period, fix the issue fully and send written proof before it ends.
Where will you see it?
In the events of default section of the merchant agreement.
Is this legal advice?
This is general information, not legal advice.
Which terms are related to cure period?
The full list is in the glossary. Owners ask about this in What's the difference between an MCA approval and an offer?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.