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Are you Compliant with the New California Financial Disclosure Law?

Intro & Overview
APR Calculator

In California, as of December 9th, revenue purchase agreement (aka MCA) funding has new statue driven disclosure requirements at the time a funder makes an offer, including a complex APR calculation and a FORM that must be specifically formatted before it is submitted to both the Merchant and Broker. While the statute requires you to provide the Merchant and the Broker with an APR and FORM, the statute doesn't tell you how to calculate the APR or offer a specific FORM example. Additionally, to remain compliant, the APR calculation tolerance is one-eighth of one percent. 


Austin LLP has created our MCA Funder's Guide to California Disclosure Law and APR Calculator to assist Merchant Cash Advance (MCA) funders to comply with the new California disclosure law.

A more detailed description of the guide can be found below.  See deBanked's review of our MCA Disclosure Guide here.

If you have questions about the new disclosure law or are interested in obtaining the guide please contact us.

MCA Funder's Guide to California Disclosure Law

To help with the statute's complexities, Austin, LLP has created a straightforward Funding Guide making underwriting quick, clear, and precise. The Funding Guide includes the following: 

1. Statute Accurate APR Calculator 

The State of California has created over 250 pages of legal documentation to clarify how the California regulatory agency calculates the APR. The APR is different contingent upon the day of disbursement, and our calculator factors that difference. The calculator also automatically creates every piece of information you need for the disclosure using purchase price, factor rate, disbursement date, first payment rate, and the merchant's revenue for the required four trailing months. 

2. Fillable PDF Statute Accurate Summary Offer Form

The California disclosure statute and regulations do not provide the form required for the disclosure yet have precise formatting requirements. Our statue-compliant PDF form uses predefined input cells that can be completed in minutes without ambiguity ensuring you correctly make the required disclosures to the MERCHANT and BROKER. 

3. Statute Accurate Future Prosecution Defense Materials

Should you encounter any future litigation, our guide contains all of the statute law with citations to the law in our reference appendix, an invaluable tool for your defense counsel, saving you time and money. 

Click HERE to obtain the complete guide Table of Contents, Summary Checklist and an image showing the Calculator.



"We took a leave from states mandating new regulations as we gathered more information to determine how to remain compliant. Your guide and calculator gave us everything we needed to integrate compliance easily into our business. Thank you." 


"Your calculator is so easy and straightforward. The last two attorneys we spoke with weren't willing to provide us with an APR calculator. This calculator is invaluable and allows us to turn around offers quickly."

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