[NEWCDAM]

If the merchant bounced a payment and immediately called the funder and said "here's the missed payment", that might change things. Did they do that? Did you encourage the merchant to do that?

If you don't have a contractual definition of "default", then you have to look at the industry standard. And as you have seen from the comments here, the "industry standard" is not what you thought.

Yes the merchant did exactly that and has been paying since on time. The funder only pays on the 1st and 15th. The contract states we must get paid within 7 business days with a 30day clawback. They called me on the 1st and told me they cant pay me until he makes the missed payment and pays on time. He paid and is paying on time, but they still don’t want to pay.

The clawback period is basically over, but now the funder just doesn’t want to pay until December when the term is over and he cannot just do that. They should've paid us today but would rather us get our lawyer involved, and pay us their share of profits on the deal at this point in fines for violating regulations they dont agree with.