The regulatory environment for commercial financing is shifting. States like New York, California, and Utah have implemented strict disclosure laws requiring APR-like metrics for MCAs, despite them not being loans.
Transparency is Key
The new regulations focus on transparency. Funders must clearly disclose:
- Total Amount Financed
- Total Payback Amount
- Estimated APR (Annual Percentage Rate)
- Funding Fees
Compliance Through Tech
Compliance shouldn't slow you down. Modern underwriting platforms can auto-calculate these required disclosures based on the offer terms, generating compliant contracts with a click. Vyrex is committed to keeping our users ahead of these regulatory curves.
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This piece is part of our series on how lenders can use AI to detect fraud, understand cash flow, and make faster credit decisions.
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