[Karen37a]

Governor Brown on Sunday signed into law SB 1235, a bill requiring consumer-like disclosures to be made on certain commercial finance products, including small business loans and merchant cash advances, among other things

Contrary to public opinion, the DBO The Calif Department of Business Oversight is now left with the task of addressing the issue of the calculations, time and manner of the disclosures. Providers need not comply until they make a specific date that all must comply by.
( I have heard varying stories on this date, the longest being until after the new commissioner is put in place)

Many companies offering commercial financing in California will have to choose between challenging the law in court and limiting the financing options they offer in the state. That being said it is imperative that the "powers that be" engage with the DBO regarding all these issues.

I had chosen to not get a licence in this state because of the perils that I knew would lie ahead ( just this one state, evidenced by multiple lawsuits against the merchant cash advance industry). There are many state and federal laws, credit, syndication, loans, advances that I am aware of from being in Financial Services for over 25 years. I know it will be a prudent decision as my strategy has always been, litigation avoidance and regulatory defence * or an offensive approach to cheaters and cons who borrow money then hide behind regulation to not pay ( And I have never had 1 single regulatory complaint, in multiple states with multiple products in my entire life;nor anyone I was in supervisory control over; starting from the 1980's. Not even Micky mouse at Walt Disney can say that)

(I will not feel the same about licencing in other states. Just the one.)

I will sit back and watch it all unfold. I know from past experience that once they step into the fold they sometimes add more and more additional requirements until it is not worth it for anyone to do business with them. Risk vs Reward = Profit

Companies may stop offering merchant cash advances and analogous loan products, depriving California merchants of the ability to align their financing obligations with their cash flow. This surely is not the result intended by the bill’s sponsors but it is poorly crafted of all the reasons I have stated previously. California will be a guinea pig

( When it doesn't work out well I will not listen to people saying, well we didn't realize this and that )


Thinking that Regulation is not going to fine the majority of you and litigation won't ensue over defaults, forced or not, rates and renewals are deluded pie in the sky, sheltered background thoughts, . Its like thinking police officers, do not have to give tickets out and arrest people.

Gl In California