What legislation was passed in Utah?
Effective Sunday, January 1, 2023 the state of Utah will require commercial financing providers to deliver a “Sales-Based Financing Disclosure Form” to small businesses in their state before entering into a revenue-based financing transaction. Because Forward Financing provides this type of product, we must follow this law and have each Utah-based customer sign a disclosure form.
What will small business owners need to do?
Utah requires funders like Forward Financing to provide a disclosure form to any customer with a business address in the state.
Forward will provide every small business in Utah with the disclosure form at the same time as the funding contract. To confirm receipt, Forward must receive a signed disclosure form in order to fund. In most cases, whether working with an ISO or directly with Forward, the customer will receive two separate emails simultaneously – one with the disclosure form and one with the contract.
What do ISOs need to know?
To comply with Utah’s law, Forward Financing must receive a signed disclosure from any Utah customer. Forward will treat this disclosure as a stipulation required for funding.
Most of the information on the Utah disclosure form is also included on the front page of Forward’s contract.
Who can I contact if I have questions?
ISOs are encouraged to contact their Account Manager with any questions regarding Forward’s change in processes related to this Utah legislation. Further information on the new law can be found here.
Customers working with an ISO and funding with Forward for the first time are encouraged to contact their ISO with questions on any documentation requirements, including this disclosure form. Customers who are working directly with Forward Financing are welcome, as always, to reach out to their Account Executive with any questions or concerns.
Will other states be passing similar legislation?
While none of us know for sure what legislation will or will not be passed, we can share our steadfast commitment to delivering financial opportunity to small businesses and being transparent and ethical in doing so.
We are involved in these discussions and closely monitoring any legislation that could affect our customers and ISOs. We will keep ISOs informed as decisions are made and will help them navigate any changes to how they work with Forward and the customers we share.