CALIFORNIA COMMERCIAL FINANCING LAWYER

CALIFORNIA COMMERCIAL FINANCING LAWYER

CALIFORNIA COMMERCIAL FINANCING DISCLOSURES LAWYER

DBO is now Department of Financial Protection and Innovation (DFPI)

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: