[Karen37a]

https://debanked.com/2018/08/califor...e-unfavorable/

California’s bill to mandate certain disclosures on business loan and merchant cash advance contracts is looking a little bit worse. TThe Annualized Cost of Capital method (Explained here) that some folks in the industry were accepting of, has been scrapped in favor of whatever formula a state regulator decides to pick. That means if the Commissioner of Business Oversight decides on an APR disclosure, which many industry trade groups believed they had already successfully lobbied against, all loans and non-loans alike would have to report an APR, a mathematical impossibility for a product like merchant cash advance. At present, however, all that is known is that the Commissioner’s choice must be an annualized metric.


https://www.bna.com/calif-smallbusin...-n73014482092/

Opposition Remains
Though the bill amendment doesn’t define which metric should be used, its supporters are backing the use of an estimated annualized rate to give borrowers something akin to an apples-to-apples comparison among products.

But some companies that offer open-ended financing products such as merchant cash advances and other nonfixed term financing say APR doesn’t give an accurate picture of the cost of their products, which can depend on the volume of transactions to repay credit.

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the amended version of the bill needs to get approval in both the Assembly and the Senate by Friday before the legislative session ends.

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**ps I can sell a 600% rate on paper in big bold print, and so can some other salespeople...so...this is where the real salespeople come in on the phone ( some are cutting thier own throats and they havent realized it yet)


I wonder what the A paper renewals with the double dip will look like on paper .. 66%...100%? Is kabbage going to disclose all the interest up front...i never calculaed that number to an exact figure. If it pays back early then what...you opened a hornet nest

And I said from the beginning you are not regulating some small ( in regards to funding) dui woman...the money is what is going to be regulated