While Forward takes great care to ensure our funding agreement is clear and comprehensive, California is requiring a separate form for commercial financing transactions, including “sales-based” financing.
Forward will provide a disclosure form every time an ISO makes a “specific commercial financing offer” to a California-based small business.
“Specific commercial financing offer” means a written communication to a recipient, based upon information from, or about, the recipient, including a piece of information from A and B below:
- A. Periodic payment amount, Irregular payment amount, or Financing amount
- B. Any rate, price, or cost of financing, or any total repayment amount
When a customer wishes to accept a specific offer, they will receive (1) their funding agreement (since this is when they’ll receive an offer that binds Forward) and (2) a final disclosure form in separate emails. The documents in both emails must be signed before moving forward in the funding process. The funding agreement must be signed by all parties; the disclosure form only needs to be signed by one business owner.
In all cases, whether working with an ISO or directly with Forward, the customer will receive disclosure forms from Forward as long as we have a business email address for the customer. Depending on the ISO’s preference, the customer will receive the funding agreement directly from Forward or from their ISO.