BETHESDA, Md.–(BUSINESS WIRE)–Rapid Enterprise, a division of Rapid Finance, an industry leader in delivering automated and scalable Lending-as-a-Service (LaaS) solutions to support the growth and success of small businesses, announced the availability of its SMB Disclosure Service, a standalone Software-as-a-Service (SaaS) Regtech module, to support business lenders and financing companies who do business in Georgia and Florida, ensuring they comply with each state’s new commercial financing disclosure requirements that will take effect on January 1, 2024.
With the passage of Georgia’s Senate Bill 90 and Florida’s HB 1353, both states have joined a growing number of states, including California, Utah, Virginia and New York, that have enacted similar disclosure laws. These commercial financing disclosure laws aim to standardize disclosures for commercial financing below a certain principal financing amount. In both Georgia and Florida, these regulations require certain commercial financing providers to be transparent with transactions of $500,000 or less that occur at least six times per year. The Georgia and Florida laws are similar to Utah’s disclosure laws in that they require a lender to disclose the total dollar cost of the financing, but are not required to disclose an APR like California or New York.
“We’re seeing an increasing number of states passing regulatory legislation rooted in transparency, fair business and borrower protections for businesses,” said Will Tumulty CEO of Rapid Finance. “We are aware that the introduction of new compliance requirements differing between states may be challenging for providers, so we have created SMB Disclosure Service to help meet this challenge and enable providers to standardize regulatory requirements.”
Organizations have the option to integrate their existing loan origination platform with Rapid Finance’s SMB Disclosure API (application programming interface) or utilize a user interface to obtain desired statements. Commercial finance providers can provide customers with disclosures (including calculated APR and fees) that abide by regulations and provide clarity on offerings in either HTML or PDF format. With more states passing similar regulations for SMB financing, Rapid Finance’s API and user interface equips lenders with a way to remain compliant with states’ specific regulatory requirements. Enterprises can focus their attention on building their customer relationships without worrying about not staying compliant with state regulatory requirements.
The SMB Disclosure Service is an offering from Rapid Enterprise, the company’s business segment focused on providing LaaS solutions, technology consulting and custom development offerings to help enterprises accelerate their growth. Rapid Finance’s team is proactively monitoring additional state regulations in this space and will continue to add new states as similar laws come into effect. To learn more, contact [email protected].
About Rapid Finance/Rapid Enterprise
Since 2005, Rapid Finance has been supporting the growth and success of small businesses across the U.S. Powered by a thoughtful combination of technology, speed and deep industry expertise, the Rapid Enterprise business line provides Lending-as-a-Service solutions to enterprise clients. With modular, flexible and scalable financial solutions, Rapid Enterprise solutions are customized to our enterprise partners’ needs. Learn more at https://enterprise.rapidfinance.com/.
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