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.”
