CALIFORNIA COMMERCIAL FINANCING LAWYER
CALIFORNIA COMMERCIAL FINANCING LAWYER
CALIFORNIA COMMERCIAL FINANCING DISCLOSURES LAWYER
The California Office of Administrative Law (OAL) approved on June 9 the DFPI’s proposed commercial financing disclosure regulations. The regulations extend disclosure protections to California small businesses when those businesses seek commercial financing. When the disclosures take effect on December 9 of this year, California small businesses will be better equipped to understand the costs and benefits of commercial financing offers and to compare different offers to find the best financing solution to meet their needs. The final regulations and Final Statement of Reasons are posted to the DFPI website.
The regulations are the culmination of a multi-year process in which the DFPI solicited input from a diverse range of stakeholders and used that input to improve the DFPI’s draft regulations. On September 30, 2018, California enacted SB 1235 (Glazer), a bill requiring commercial financing providers to provide disclosures to small businesses. The bill required providers to disclose the total amount of funds provided, the total dollar cost of financing, the term or estimated term, the method, frequency, and amount of payments, a description of prepayment penalties, and (until January 1, 2024) the total cost of financing expressed as an annualized rate. The California Legislature tasked the DFPI with issuing regulations before the above-described requirements would take effect.
These commercial financing disclosures requirements apply to California accounts receivable purchase transactions, including factoring, asset-based lending transaction, commercial loan, commercial open-end credit plan, or lease financing transaction intended by the recipient for use primarily for other than personal, family, or household purposes.
Commercial financing providers in California may be subject to many state and federal financial laws and regulations. THE LAW OFFICES OF ALAN ABERGEL, P.C. is knowledgeable and experienced in handling all the licensing, regulatory, compliance, and administrative matters concerning commercial financing providers operations in California. Our services include, assisting with the California Finance Lenders License application, legal advice about compliance with the California Finance Lenders law and applicable California and federal financial laws and regulations, drafting of contractual documents and disclosures in compliance with the California Finance Lenders law and applicable state and federal financial laws and regulations, representation before the DFPI in administrative litigation matters, audits, inspections, citations, desist and refrain orders, license suspensions, revocations, and accusations, representation in appeals of administrative decisions, and representation of California Commercial financing providers in court in defense against lawsuits brought by the DFPI, or other government authorities.
We do not represent consumers. We only represent lenders, commercial financing providers, and other financial services providers.
WE PROVIDE THE FOLLOWING LEGAL SERVICES TO CALIFORNIA COMMERCIAL FINANCING PROVIDERS:
- Representation of California Commercial financing providers before DFPI and assistance in getting a California Finance Lenders license.
- Representation of California Commercial financing providers in compliance with DFPI rules, and compliance with financial and lending federal laws and regulations.
- Representation in DFPI administrative hearings and proceedings, including Accusations, Statements of Issues, Desist and Refrain Orders, and Citations.
- Representation in investigations, inspections, and audits by DFPI or CFPB.
- Advice concerning state and federal financial and lending laws.
- Drafting of loan, credit documents, and disclosures for California Finance Lenders, Commercial financing providers and commercial lenders.
- Affordable flat fee outside general counsel plans to California Commercial financing providers.