BETHESDA, Md.--(BUSINESS WIRE)--Rapid Finance, a leading small business banking platform specializing in providing customized financing solutions, announced the availability of its SMB Disclosure Service, a standalone Software-as-a-Service (SaaS) Regtech Module, to assist business funders and financing companies comply with Connecticut’s commercial disclosure requirements which took effect on July 1, 2024.
Connecticut’s commercial financing disclosure law applies to financing amounts of $250,000 or less, requiring funders involved in sales-based financing to provide disclosures to businesses seeking working capital. Also, any funders or financing companies in the state must register with the Connecticut Department of Banking starting October 1, 2024.
Connecticut’s adoption of financing disclosure requirements is part of a growing trend of state-specific regulatory laws that prioritize transparency, equitable business practices and borrower safeguards. Other states such as New York, California, Utah, Florida, Georgia, Kansas and Virginia have also enacted similar commercial financing disclosure laws that aim to standardize disclosures for commercial financing below a certain principal financing amount.
“More states are beginning to adopt laws that help small business applicants make better informed decisions during the loan application process,” said Will Tumlty, CEO at Rapid Finance. “However, we recognize that remaining up to date on state-specific commercial financing regulations can be daunting for SMB lenders and finance companies. Rapid’s SMB Disclosure Service simplifies this process and is tailored to help lenders ensure compliance while navigating an ever-changing regulatory landscape.”
Funders can either integrate their existing loan or financing origination platforms with Rapid Finance’s SMB Disclosure API or leverage a user interface to access required statements. This allows commercial finance providers to deliver disclosures that comply with regulatory standards and ensures clarity on offerings for both HTML and PDF formats.
For funders seeking additional financing solutions, Rapid Finance offers a comprehensive suite of technology to optimize SMB lending capabilities. Rapid’s modular and composable origination system provides lenders with a foundational platform that streamlines the lending process and integrates seamlessly with existing systems.
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 EnterpriseSales@rapidfinance.com.
About Rapid Finance
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, Rapid Finance provides modular, flexible and scalable financing solutions to small businesses, as well as Lending-as-a-Service solutions customized to meet enterprise clients’ needs. Learn more at www.rapidfinance.com.