Financial Code section 22803

As an alternative to the disclosures required in subdivision (b) of Section 22802, a provider who offers commercial financing that is factoring or asset-based lending and that offers the recipient an agreement that describes the general terms and conditions of the commercial financing transaction that will occur under the agreement, may provide the following disclosures as an example of a transaction that could occur under the general agreement for a given amount of accounts receivables:

(a)

An amount financed.

(b)

The total dollar cost.

(c)

The term or estimated term.

(d)

The method, frequency, and amount of payments.

(e)

A description of prepayment policies.

(f)

The total cost of the financing expressed as an annualized rate.

Source: Section 22803, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=FIN§ionNum=22803.­ (updated Jan. 1, 2024; accessed Oct. 20, 2025).

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Oct. 20, 2025

§ 22803's source at ca​.gov