Rapid Enterprise, a division of Rapid Finance known for its automated and scalable Lending-as-a-Service (LaaS) solutions, has introduced the SMB Disclosure Service. This is a standalone Software-as-a-Service (SaaS) regtech module designed to aid business lenders and financing companies in meeting the new commercial transaction disclosure requirements set by the state of New York.
In line with analogous regulations in California and Utah, New York has enacted its own commercial financing disclosure law. This legislation includes updated rules mandating standardised disclosures for commercial financings below a specified principal amount.
In the official press release, representatives from Rapid Finance noted the intent behind these laws to ensure businesses comprehend the complexities of financing terms. They also acknowledged the potential challenges faced by commercial finance providers due to these new compliance mandates, challenges that can be addressed by the SMB Disclosure Service.
This tool aims to equip small business lenders and commercial financing entities in New York with the essential resources to generate compliant disclosure statements efficiently, while effectively addressing their customers' financing requirements.
Organisations can choose to integrate their current loan origination platforms with Rapid Finance's SMB Disclosure API (application programming interface). Alternatively, they can employ a user interface to access the necessary statements. Commercial finance providers submit their offer details, and Rapid Finance provides the required disclosures in either HTML or PDF format.
This includes calculated APR and fees, making it easy for the disclosures to be shared with borrowers. With an increasing number of states introducing regulations for SMB financing, utilising Rapid's API ensures lenders remain compliant with these evolving laws. This allows enterprises to concentrate on nurturing customer relationships without the burden of compliance concerns.
The SMB Disclosure Service is part of Rapid Enterprise's array of offerings aimed at providing LaaS solutions, technology consulting, and tailored development options to support enterprise growth. According to the company press release, the Rapid Finance team is actively monitoring additional state regulations in this sphere and will continue to expand to cover new states as analogous laws are enforced.
In May 2023, Rapid Finance partnered with Mambu’s cloud-based lending platform to offer Lending-as-a-Servive to financial institutions in the US.
Decisioneer, Rapid Finance’s cloud-native digital end-to-end loan origination system (LOS), offers borrowers and lenders alike with a seamless, customised user experience that can speed up the loan decisioning and underwriting process. The platform helps borrowers gain access to needed capital through their lending partners in a quick and efficient manner.
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