[Chambo]

Dear Partner,

Effective July 31, 2016, brokers referring “California businesses” to RapidAdvance for loans will be required to provide a copy of their California finance broker license. A California business is any business located in California where financing is being requested for the California location. The California licensing requirement also applies to referring partners located outside of California.

Please note: This requirement will not apply to referrals of merchant cash advances.

[Michael Jagiello BGF]

Just got one too, nice of them to give four months notice lol

[Chambo]

better than the email popping up two days prior

[OC Funder]

Dear Partner,

Effective July 31, 2016, brokers referring “California businesses” to RapidAdvance for loans will be required to provide a copy of their California finance broker license. A California business is any business located in California where financing is being requested for the California location. The California licensing requirement also applies to referring partners located outside of California.

Please note: This requirement will not apply to referrals of merchant cash advances.

It seems funders are reacting to recent change in legislation... however, two CA banking attorneys confirmed for me several years ago that the license was required even then, punishable by a misdemeanor and 6 months. You can argue that cash advances are exempt, but several advance companies have had their agreements successfully contested as loans in disguise in CA litigation. Both funder and broker can be held liable under the law, so not sure why either side would be willing to do business unless they were both licensed. To pull it off right you need 20k and clean criminal/civil records for all owners.