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Take Lead of Disclosure Regulations by Becoming a CapFlow Referral Partner

Disclosure Regulations

Disclosure regulations will now govern how businesses communicate with their clients and investors. These regulations are designed to ensure that companies are transparent about the terms of a deal. Failure to comply with disclosure regulations can result in legal action, fines, and damage to a company’s reputation.

State Disclosure Requirements

New regulations in the revenue-based financing industry in states such as California, Virginia, and Utah have already started to become implemented. More states, including New York, are activating new disclosure regulations for lenders and ISO partners. At CapFlow Funding Group, we have a dedicated team of professionals who are responsible for monitoring specific state regulatory changes. Along with ensuring that the company’s practices are compliant. Additionally, this team works closely with CapFlow Funding Group’s legal counsel. We ensure that we make all necessary disclosures to our clients and investors.

California Disclosure Requirements for Lenders and ISO Partners

In California, lenders, and independent sales organization (ISO) partners are subject to several disclosure requirements under state law. The following are some of the key disclosure requirements:

Truth-in-Lending Act (TILA):

Under the TILA, lenders are required to disclose the terms and conditions of a transaction. Including the annual percentage rate (APR), finance charges, and total amount financed. These disclosures must be made in a clear and conspicuous manner before the borrower is obligated to pay any fees or sign the agreement.

California Financing Law (CFL):

The CFL requires lenders to obtain a license from the California Department of Financial Protection and Innovation (DFPI) and to disclose certain information to borrowers, including the rates, fees, and charges associated with the transaction.

Unruh Civil Rights Act:

This law prohibits discrimination based on various protected characteristics, including race, gender, and sexual orientation. Lenders and ISO partners must ensure that their loan products and services do not discriminate against borrowers based on these protected characteristics.


Virginia Disclosure Regulations

Virginia has now become the second state to require registration and financing disclosure. Sales-based financing brokers and providers must register with the Virginia State Corporation Commission annually. Providers must disclosure specific funding terms including the amount of financing, any charges/fees, the estimated number of payments, information related to prepayments, total payment amount, and the total repayment amount. Unlike California, Virginia does not require disclosure of an annual percentage rate. This Act applies to contracts in Virginia that are entered into in or after July 1, 2022.


Disclosure Act Signed in Utah

Starting on January 1, 2023, commercial financing providers in Utah are required to register with the Utah Department of Financial Institutions and to provide financial disclosures. This includes providers of commercial loans, commercial open-end credit plans, and any revenue-based financing transactions. Disclosure requirements in Utah are now as follows:


Utah law requires commercial finance lenders and brokers to obtain a license from the Utah Department of Financial Institutions to conduct business in the state. The licensing process typically involves providing information about the business, its owners and officers, and its financial condition.

Disclosure requirements:

Commercial financing providers in Utah must provide certain disclosures to their customers.

Debt collection regulations:

Utah has several regulations that govern the collection of debts. For example, debt collectors must provide certain disclosures to consumers when attempting to collect a debt. They are prohibited from engaging in harassing or deceptive practices.

Licensing and disclosure requirements for securities-based loans:

If a commercial financing provider is offering loans secured by securities in Utah, they may be subject to additional licensing and disclosure requirements under state and federal securities laws.


These are just a few examples of the compliance and disclosure requirements that commercial financing providers may need to be aware of when operating in Utah. Therefore, if you are a commercial financing provider or are considering becoming one, it is important to consult with a compliance officer who is familiar with the relevant laws and regulations.


Our team of professionals at CapFlow work together to monitor state regulations to make sure we are complying with any changes. 

In what way does CapFlow Funding Group remain compliant with disclosure regulations?

One way that CapFlow Funding Group stay ahead of disclosure regulations is by providing clear and concise information about their financing solutions. They provide detailed information about the costs associated with their services and the terms and conditions of their financing agreements. This ensures that their clients are fully informed about the risks and benefits of working with CapFlow Funding Group.

Another way that CapFlow Funding Group takes lead of disclosure regulations is by regularly updating their disclosures to reflect changes in the regulatory environment. They take a proactive approach to compliance, rather than waiting for regulators to force them to make changes. Altogether, we ensure to always try to protect and inform our clients.

Become a CapFlow Referral Partner

CapFlow Funding Group’s commitment to transparency and compliance makes them an ideal partner for businesses looking for financing solutions. They offer a range of financing options that can help businesses meet their cash flow needs. Furthermore, their dedication to compliance seeks to provide protection for their clients.

In summary, we are up to date with all regulations related to financing. This means that you can trust that your funding solutions are compliant and your business is being protected. Fund your files with CapFlow Funding Group and rest assured that you are working with a company that values transparency, compliance, and success. With this in mind, if you’re interested in becoming a referral partner with CapFlow Funding Group, contact us directly.

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