Publications

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: