Compliance with Alternative Financing Industry Regulations

BH Capital Funding LLC is dedicated to maintaining the highest standards of compliance with all applicable federal, state, and local laws and regulations. This commitment ensures that we operate transparently, ethically, and in the best interest of our clients. Below is an overview of our compliance framework:

Federal Laws and Regulations

  1. Uniform Commercial Code (UCC)

    • Governs commercial transactions, including MCAs, ensuring proper lien filings and securing interests in collateral​ (Capital Alliance)​.

  2. Truth in Lending Act (TILA)

    • Requires clear disclosure of terms to help borrowers make informed decisions. Although MCAs are structured as commercial transactions, understanding TILA's principles helps maintain transparency and avoid misleading practices​ (Capital Alliance)​.

  3. Dodd-Frank Wall Street Reform and Consumer Protection Act

    • Ensures compliance with anti-fraud and fair dealing standards, indirectly impacting MCAs by overseeing financial institutions and markets​ (Capital Alliance)​.

State Laws and Regulations

  • New York

    • Commercial Finance Disclosure Law (CFDL): Imposes disclosure requirements similar to consumer lending, including the need for clear terms, APR disclosure, and prohibiting Confessions of Judgment (COJ) for New York residents​ (TopNYLaw)​​ (Onyx IQ)​.

  • California

    • Senate Bill 1235: Requires lenders to provide cost of credit disclosures, including APR and other key terms, for commercial transactions​ (Onyx IQ)​.

  • Virginia

    • House Bill 1027: Requires MCA providers to register with the State Corporation Commission and disclose transaction terms, including the total amount of funds provided and the repayment structure​ (Global Law Firm | DLA Piper)​.

  • Utah

    • Commercial Financing Registration and Disclosure Act: Mandates registration with the Utah Department of Financial Institutions for providers engaging in more than five transactions annually and requires detailed disclosure of financing terms​ (Global Law Firm | DLA Piper)​.

Industry Standards

  1. National Institute of Standards and Technology (NIST) Guidelines

    • Implements robust cybersecurity frameworks to protect client information​ (Capital Alliance)​.

  2. Small Business Borrowers’ Bill of Rights

    • Ensures fair treatment of small business borrowers with transparent pricing, responsible underwriting, and the right to information​ (Capital Alliance)​.

Licenses and Permits

  • Federal and State Licenses: BH Capital Funding LLC maintains all necessary licenses and permits to operate legally within each jurisdiction.

  • Evidence of Compliance: We provide documentation of compliance with licensing and regulatory requirements upon request.