CALIFORNIA DISCLOSURE LAW
HERE IS WHAT YOU NEED TO KNOW BEFORE THE END OF THE YEAR!
New commercial financing disclosure requirements took effect in California on Dec. 9 and SLIM CAPITAL is providing important resources to help YOU prepare. As of December 9, 2022, California requires business financing brokers like yourself to facilitate the providing of certain financing disclosure to California merchants.
HERE’S WHAT THIS MEANS FOR YOU
In order to comply with the new California Disclosure Laws, SLIM CAPITAL has made a change to the document funding package for your customers that are in the State of California. If the transaction is written as an EFA, loan, or “$101 Out,” as of, December 9, 2022, a new “disclosure” form, which is mandated by the State of California, will be included in our document funding package that must be reviewed and signed by your customer. The California Disclosure Form provides information such as the funding provided, upfront fees charged, term, payment and APR. The Disclosure must be signed and returned prior to funding of your transaction for your client. Please be on the lookout in the new year for a sample form along with an updated SLIM Capital agreement that will need to be signed and returned reflecting these changes.
HERE’S THE GOOD NEWS
SLIM CAPITAL is well prepared for this change in the documentation and the requirements surrounding this new law. We will prepare all necessary documents for you and your client to properly execute your deal. Check out our very own Shervin Rashti as he discusses the new law and how it will affect you and your business. This is an excellent resource to help you understand more!
WE’RE HERE TO HELP
Feel free to contact us with any questions you may have regarding the new Disclosure Law.
