California Now Requires Mandatory Disclosures on Commercial Finance

California Governor Jerry Brown has signed SB 1235.

As of Jan 1, 2019, commercial finance companies in California will be required to disclose the following on their contracts:

(1) The total amount of funds provided.
(2) The total dollar cost of the financing.
(3) The term or estimated term.
(4) The method, frequency, and amount of payments.
(5) A description of prepayment policies.
(6) The total cost of the financing expressed as an annualized rate.

See the law’s full text here

To find out if this bill affects your company, contact an attorney.

Read all of our previous coverage of the law here.