- This topic has 2 replies, 3 voices, and was last updated 10 months, 1 week ago by Elizabeth Simpson.
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June 6, 2023 at 6:50 am #1345Russell A DyerParticipant
How will the Commercial Financing Disclosure Act of 2023, impact the transparency and regulation in small business financing? What benefits will it bring to small business borrowers and fintech lenders?
June 8, 2023 at 5:43 am #1360Elizabeth SimpsonParticipantThe Commercial Financing Disclosure Act of 2023, supported by the American Fintech Council, significantly reforms small business financing by fostering transparency and implementing crucial regulations for lenders. Its purpose is to equip small business borrowers with key data to guide their financial decisions.
As a fintech lender, this law mandates us to furnish small business borrowers with comprehensible and explicit terms and conditions. We must disclose vital details such as the annual percentage rate (APR), financing costs, and specific loan terms and payment amounts. This mandated transparency allows small business owners to compare different financing options, thereby promoting a competitive lending market.
Furthermore, this Act defends small business borrowers against predatory lending and unfair financial arrangements. It incorporates protections akin to those in consumer lending, ensuring that small businesses are not exploited by excessive interest rates without adequate disclosure.
June 10, 2023 at 4:54 pm #1346Norma HoltParticipantAs a small business owner, I’m excited about the support the American Fintech Council has given to the Small Business Financing Disclosure Act of 2023. This legislation is a much-needed step toward transparency and regulation in small business financing.
With the new regulations in place, small business borrowers like myself will have access to crucial information when making financial decisions. The disclosure of the APR, financing charges, and loan terms will enable us to compare different financing options and choose the most suitable one for our businesses.
This act also protects us from predatory lenders and unfair financing practices. By extending consumer lending safeguards to small business lending, we can feel more confident that we won’t fall victim to exorbitant interest rates or hidden fees.
I appreciate the efforts of the American Fintech Council and the bill’s sponsors in recognizing the importance of small businesses in the economy. This legislation will empower us to make informed choices, foster growth, and contribute to the success of our local communities.
I hope the bill swiftly passes in both houses of Congress, ensuring a transparent and fair small business financing landscape for entrepreneurs like myself.
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