Close More Deals. Simplify Equipment Financing.

Who We Help:

• Agriculture & Construction Equipment Dealers
• Business Owners Seeking Financing
• Vendors Selling Equipment Nationwide

States Requiring Disclosure Agreements for Equipment Financing

The following states currently enforce commercial financing disclosure laws:

• California
  Effective Date: December 9, 2022
  Requirement: Lenders must disclose key loan terms, including APR, total repayment amount, and finance charges for commercial financing offers of $500,000 or less.
• New York
  Effective Date: August 1, 2023
  Requirement: Applies to financing transactions up to $2.5 million, requiring disclosure of loan terms, repayment amounts, and other key financial details.
• Utah
  Effective Date: January 1, 2023
  Requirement: Mandates disclosures for commercial financing amounts of $1 million or less.
• Virginia
  Effective Date: July 1, 2022
  Requirement: Focused on sales-based financing, requiring clear communication of repayment terms.
• Florida
  Effective Date: January 1, 2024
  Requirement: Requires disclosure for transactions of $500,000 or less, ensuring borrowers have clear visibility into financial obligations.
• Georgia
  Effective Date: January 1, 2024
  Requirement: Mandates transparency in commercial financing agreements below $500,000.
• Connecticut
  Effective Date: July 1, 2024
  Requirement: Requires commercial lenders to disclose loan terms to ensure transparency in business transactions.
• Kansas
  Effective Date: July 1, 2024
  Requirement: Similar to Connecticut, Kansas mandates commercial financing disclosures to protect small business borrowers.

Implications for Dealers and Vendors

For equipment dealers and vendors operating in these states, these disclosure laws present both challenges and opportunities:

• Increased Regulatory Complexity: Dealers must ensure their financing partners comply with state-specific disclosure laws.
• Longer Sales Cycles: Additional paperwork and disclosures may extend the financing approval process.
• Customer Concerns: Business owners may have questions about new financing requirements, necessitating additional education.