Latest news with #California-compliant
Forbes
04-04-2025
- Business
- Forbes
Understanding California's Disclosure Law
Andrew Coon, CEO of CapFlow Funding. getty California's commercial financing disclosure law introduces new compliance requirements for funders operating in the state of California. Designed to provide small businesses with clearer insights into their financing terms, the law applies to a broad range of financing products, including invoice factoring. It emphasizes detailed and standardized disclosures, creating new considerations for funders as they adjust their processes to align with these mandates. In my role, I've witnessed many funders in the factoring industry being unable to fund in California due to the state's regulations. These regulations can be complicated, costly and time-consuming. Therefore, I believe this information is essential to help our merchants stay compliant and on top of the changing landscape. California's law, officially known as SB 1235, mandates clear and consistent disclosures for various types of commercial financing. Funders are now required to provide small businesses and merchants with detailed information about their financing agreements, including: • The total cost of financing, expressed as an estimated annual percentage rate (APR) • Payment terms and schedules • Potential prepayment penalties or conditions • A breakdown of fees and additional charges The law applies to a range of financial products, including invoice factoring and revenue-based financing, making it one of the most comprehensive efforts to regulate alternative financing. Unlike consumer lending laws, this disclosure law targets small businesses, ensuring they have the information needed to make informed financial decisions. For funders, the law presents significant operational and logistical challenges: • Calculating APR For Nontraditional Products: Revenue-based financing and factoring often don't align with traditional loan structures because they are open-ended purchases of receivables. Calculating an APR for products with flexible repayment terms and undefined payment terms can be complex and resource-intensive. • Contract Adjustments: Funders must revise their contracts to include standardized disclosures, which may require extensive collaboration with legal teams and compliance experts. • Increased Operational Costs: Compliance demands, such as upgrading software to generate accurate disclosures or training teams to understand the new requirements, could lead to higher overhead costs. While challenging, the disclosure law also presents a range of opportunities for funders: • Being A California-Disclosure Complaint Funder Where Many Will Not: California-compliant disclosures demonstrate a commitment to ethical practices, and staying on the right side of regulation. • Enhancing Industry Credibility: By meeting or exceeding disclosure requirements, funders can set themselves apart as leaders in responsible financing. • Driving Innovation: The need to adapt may accelerate the adoption of new technologies, such as automated compliance tools and enhanced underwriting processes. California is not alone in its push for transparency. States such as New York, Utah and Virginia (to name just a few) have enacted similar laws, and others are considering proposals that mirror these requirements. This trend raises the possibility of a federal standard that would unify disclosure practices across all states. For funders operating nationwide, the challenge lies in navigating a patchwork of state regulations while preparing for the possibility of broader federal oversight. Forward-thinking funders should consider investing in systems, personnel and processes to ensure compliance across jurisdictions. It's important for funders to embrace proactive strategies to stay ahead of these regulatory changes. Here are a few best practices for funders operating in California and beyond: 1. Leverage technology. Invest in tools that automate disclosure generation, ensuring accuracy and consistency across contracts. 2. Train your teams. Educate sales and underwriting teams on effectively communicating the nuances of the new disclosures to clients. 3. Monitor regulatory updates. Stay informed about evolving laws in other states to avoid compliance pitfalls and to capitalize on opportunities. 4. Collaborate with legal experts. Partner with experienced compliance professionals to adapt contracts, processes and policies to meet new standards. California's disclosure law is one of several new regulations being introduced to govern the commercial financing industry. These laws require funders to adjust their practices to meet evolving compliance standards. As similar regulations emerge in other states, funders, businesses and merchants need to stay informed and prepared to navigate the changes. Awareness and education will be key to ensuring compliance and adapting to the shifting regulatory landscape. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Boston Globe
19-02-2025
- Business
- Boston Globe
Restaurants, diners scrambling to deal with eye-popping egg prices
The 24-hour eatery, which prides itself on its old-school atmosphere and menu, goes through roughly 400 dozen eggs every weekend. Like most classic breakfast places, eggs — poached, fried, and everything in between — are a central part of its business. When prices began to tick up toward the end of last year, Sidell hoped they'd come down by January. Then he was assured the bird flu outbreaks would abate by February and supply would return to normal. Now he's not sure how much longer it will last, or how much longer he can take it. Get Winter Soup Club A six-week series featuring soup recipes and cozy vibes, plus side dishes and toppings, to get us all through the winter. Enter Email Sign Up 'Our next big weekend is St Patrick's Day,' Sidell said. 'So we're hoping this is resolved by then.' Advertisement The nationwide wholesale price for loose eggs rose to $7.74 per dozen, up about 68 percent already this year, according to the latest data from the Department of Agriculture. The price for loose eggs designated 'California-compliant,' Related : So far, the South Street Diner has managed to avoid the same markups as other restaurants such as Waffle House, to his customers. But if the price hikes reach the point 'when I can't bring home a paycheck and make sure my wife is happy,' he said — price increases would have to be on the table, he said. 'We want to make sure that everybody has a reasonable price, but we want to make sure that we can make a living,' Sidell said. It's not just sky-high prices that are squeezing breakfast eateries. As bird flu decimates flocks in California, Pennsylvania, and the Midwest, wholesalers are reporting chronic supply shortages, forcing diners to stretch their supplies. Advertisement Rob Doucette, owner of Liberty Diner on the Roxbury-South Boston line, said his kitchen goes through a case of 30 dozen eggs about every other day. But earlier this month, his regular supplier called and said the usual order of eggs wasn't available. They assured him they would let him know when the order was ready, but that call still hasn't come. Luckily, Doucette said he managed to stop by on the supplier's restocking day. Posted in the back of the warehouse, he said, was a sign limiting purchases to five cases of 15 dozen eggs. The cases of 30 dozen, which he normally buys, were nowhere to be seen. 'I'm going to stop by again today to see if I can purchase any more,' Doucette said last week. 'But I'm not expecting it.' Wholesalers said they are rationing cases to make sure all of their accounts are able to receive at least part of their regular order, with the hope of backfilling it later. But that poses a challenge for smaller wholesalers like Shirazi Distributing, based in Newmarket Square, which turns over its warehouse inventory two to three times a week. 'We're not sitting on product, which means anything we bring in is going to be sold within the next couple of days,' said Josh Shirazi. 'So if we're getting a delivery of eggs twice a week, and we order 10 pallets and only two or three come in, that means we're running out of eggs.' Shirazi said the fluctuations of supply and demand are 'day to day,' making it impossible to plan ahead. Advertisement 'We're not bracing for it to get worse — we are braced,' he said. 'We're at the mercy of what the farms will send us." Kay Masterson, owner of Johnny's Luncheonette in Newton, orders anywhere between 15 and 20 cases of eggs a week. The diner tries to stay ahead of potential price shocks with small, incremental increases throughout the year, she said. For now, that means she hasn't had to raise prices on her 'Jordan Marsh' skillets and other egg-centric dishes. 'You want to keep your doors open for as many people as possible,' Masterson said. 'So we are price-sensitive. We try and do our best. And it's a tricky balance.' Masterson said it would be a painful decision to hike prices dramatically, especially since many of its customers are students and seniors who don't have a lot of money to spare. 'I know some people who are in almost every day, and I know what an integral part we are in their lives,' she said. 'I never want to get to a point where they couldn't come in and enjoy their time with us.' Sidell said he was optimistic South Street would be able to weather the price increase without passing the costs along, adding that if the pandemic taught him anything, it was that 'there's always a new curve in the restaurant business.' Doucette said Liberty has increased the price of its breakfast items. His customers, he said, need only go to the grocery store to know why. 'Seeing how the market has changed and the price has risen so drastically, so quickly, people kind of understand,' he said. 'We can't help it, but if we want to continue to sell eggs and get eggs, we have to change our price accordingly.' Advertisement But with the end of high prices nowhere in sight — according to the USDA, there is 'little chance for improvement in the near-term' — Doucette said he might have to take more serious measures. 'I don't know what the turnaround is for buying chickens and having them reproduce,' he said. 'That would be somewhere down the road. Hopefully it doesn't get to that point.' Waitress Leighann Weston with customers at the South Street Diner in Boston. South Street Diner serves roughly 400 dozen eggs every weekend. David L. Ryan/Globe Staff Camilo Fonseca can be reached at
