California's New MCA APR Disclosure Law: What Changed
California's Department of Financial Protection and Innovation now requires MCA providers to disclose the equivalent annual percentage rate before funding. Providers must present total cost comparisons in standardized formats.
What the law requires
Before you sign, you're entitled to see an APR that reflects the true cost of the advance over its term. That puts MCAs on a more level playing field with loans when it comes to comparison shopping.
Standardized format
Disclosures must be in a format that allows apples-to-apples comparison. If you're in California and your lender didn't provide this, you may have rights under state law.
Other states
Texas, New York, and others have moved in similar directions. Check your state and always get your contract analyzed so you know exactly what you're signing.
Does Your Contract Have These Red Flags?
Upload it free — get your full analysis in under 30 seconds.
Related Articles
New York's $534M MCA Settlement: What It Means for Borrowers
A major MCA provider agreed to a landmark settlement over deceptive practices. We break down what happened and what it means for your rights.
Confession of Judgment: What It Is and Why It's Dangerous
A COJ lets a lender get a court judgment against you without notice or a hearing. New York banned enforcement against out-of-state borrowers — but many contracts still include it.
What Is a Factor Rate — and Why It Hides the True Cost
When an MCA provider quotes you a factor rate of 1.35, it sounds reasonable. But factor rates aren't interest rates. Here's how to convert yours to a real APR.
FundingWatch Research Team
Our team analyzes MCA contracts, regulatory actions, and borrower rights so small business owners have the facts they need to make informed decisions.