Rapid Finance’s API-Supported Small Business (SMB) Disclosure Service Now Supports Kansas’ New Commercial Financing Disclosure Requirements
BETHESDA, Md.–(BUSINESS WIRE)–Rapid Finance, a leading small business banking platform specializing in providing customized financing solutions, announced today 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 Kansas’ new commercial disclosure requirements that took effect July 1, 2024.
The passage of Senate Bill 345 makes Kansas the latest addition to a growing number of states across the U.S. that are adopting similar financing disclosure laws. California, New York, Virginia, Utah, Florida, Connecticut and Georgia have already passed state-specific laws that aim to standardize disclosures for commercial financing below a certain principal financing amount.
Kansas’ new law establishes requirements for disclosures in commercial financing transactions, which requires funding companies to disclose the amount of the financing, disbursement amounts, and any fees associated with the financing. The law will apply to commercial financing transactions of $500,000 or less, and include sales-based financing, factoring and commercial loan transactions.
“We are seeing a growing trend of states enacting regulatory laws focused on transparency, equitable business practices and borrower safeguards,” said Will Tumulty, CEO of Rapid Finance. “These laws encourage small business applicants to make more informed decisions during the loan application process. However, we also recognize that navigating the growing number of state-specific commercial finance requirements can be difficult for SMB lenders and finance companies. Our SMB Disclosure Service is specifically designed to help lenders ensure compliance while managing this increasingly complex regulatory environment.”
Funders can integrate their existing loan origination platform with Rapid Finance’s SMB Disclosure API or leverage a user interface to access required statements. This allows commercial finance providers to deliver disclosures, including calculated APR fees, if applicable, that meet regulatory standards. This ensures clarity on offerings in both HTML and PDF formats. With more states adopting similar regulations for SMB financing, Rapid Finance’s API and user interface offer funders a reliable way to comply with state-specific regulatory requirements.
For funders requiring additional financing solutions, Rapid Finance offers a suite of technology to help optimize their SMB lending needs. Rapid Finance’s modular and composable origination system provides lenders with a robust platform that streamlines lending processes and integrates seamlessly with existing ecosystems.
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
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.
Contacts
Augusta Bauknight
For Rapid Finance
678-781-7214
[email protected]
Alex Arango
For Rapid Finance
912-429-9942
[email protected]
