How do I read an MCA disclosure in New York and California?
New York 23 NYCRR 600 and Financial Services Law Article 8 require a commercial finance disclosure when the amount is $2,500,000 or less. California Financial Code 22802 lists what a covered disclosure must contain. Both papers should show payment amount or method and a finance-charge style APR. Read the provider form, not a sales email.
On this page
MCA debt relief in New York and California starts with the disclosure, the one-page or few-page form the provider must give when the offer is in range. It is not the full contract.
What New York requires
The February 1, 2023 DFS announcement says providers of commercial financing in amounts of up to $2,500,000 must give standardized disclosures when offers are extended. 23 NYCRR Part 600 is the regulation that implements New York 2021 bill S898 (amends Financial Services Law article 8).
Look for the finance charge, the APR-style figure, the payment amount or method, and the estimated term. Sales-based financing has its own format in that part.
What California requires
California Financial Code section 22800 sets the definitions for Division 9.5. Section 22800(n) defines a recipient as a person presented a specific commercial financing offer equal to or less than $500,000. Section 22802 lists what the disclosure must contain. Match the payment method on that form to the weekday ACH you actually see. Sacramento keeps the California notes.
How to use the paper
Put the disclosure next to the signed contract. If the weekday split does not match, write down the two figures before you call anyone. What is a merchant cash advance daily debit? is the ACH definition. What to do when merchant cash advances take a daily debit is the order after that.
Sources
Where our facts come from
How this page was checked
- Licensed professional
- None. No licensed attorney who handles commercial finance has checked this page.
Ask about the weekday ACH
A partner MCA relief firm can call about the weekday ACH you are seeing. Asking is free, and the call does not hire them.