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California
Commercial Financing Disclosures Guide
Sales-Based Financing
by Katherine C. Fisher, Robert F. Gage, Daniel J. Laudicina, Eric D. Mulligan, Hudson Cook, LLP

A guide to complying with California Commercial Financing Disclosures Law for funders and brokers of "sales-based financing" (also called merchant cash advance or revenue based-financing). The Disclosures Guide addresses the following questions that funders and brokers need to know to do business in California:

  • Who must provide the disclosures?
  • When are the disclosures required?
  • Who is entitled to receive the disclosures?
  • What are the signature requirements for the disclosures?
  • What must be included in the disclosures?
  • Using estimates when providing disclosures.
  • What is a "true-up mechanism" and how does a provider disclose a "reasonably anticipated true-up"?
  • What are the penalties for not complying with the California Commercial Financing Disclosures Law?

The Disclosures Guide also provides a roadmap for calculating and providing disclosures, including the format of required disclosures and a row-by-row breakdown on how to fill out the following required disclosures:

  • Funding provided;
  • Estimated Annual Percentage Rate (APR);
  • Finance charge;
  • Estimated total payment amount;
  • Estimated monthly cost;
  • Estimated payment;
  • Payment terms;
  • Estimated term;
  • Prepayment;
  • Itemization of Amount Financed.

This Disclosures Guide will be a valuable tool for anyone who is responsible for getting their organization into compliance with the California Commercial Financing Disclosures Law.

Excerpt from the Guide:
Excerpt from the Guide

California Commercial Financing Disclosures Guide
Price
Qty
$7,000
June 2022 • Download Only
38 Pages

Available Now!

If you would like to purchase this product by check or wire, please contact Heather Medeiros at 410-782-2355.