“Good Faith” Disclosure

1. Transparency and Communication

• Terms and Conditions:

  • The total amount of the advance and the disbursement amount after any fees.

  • The finance charge and total repayment amount (disbursement amount plus finance charge).

  • Estimated number of payments based on projected sales volume.

  • Payment amounts, including fixed and variable payment schedules.

  • Detailed descriptions of potential fees such as late payment fees, returned payment fees, and prepayment penalties.

• Disclosure of Fees:

  • No broker fees will be charged at any point unless explicitly for consulting, coaching, or similar services.

2. Compliance with Legal Requirements

• Federal Regulations:

  • Adherence to the Federal Trade Commission Act (FTCA) to prohibit unfair and deceptive trade practices.

  • Compliance with the Gramm-Leach-Bliley Act (GLBA) for data privacy and security.

  • Abidance by Section 1071 of the Dodd-Frank Act for data collection and reporting.

• State-Specific Laws:

  • Compliance with disclosure and licensing requirements in states such as Virginia, New York, and California, including up-front disclosure obligations and registration with state authorities.

3. Ethical Practices and Fiduciary Responsibility

• Commitment to the Small Business Borrowers’ Bill of Rights:

  • Transparent pricing and terms.

  • Non-abusive products.

  • Responsible underwriting.

  • Fair treatment from brokers.

  • Inclusive credit access.

  • Fair collection practices.

• Compensation Structure:

  • BH Capital Funding operates on a commission basis only when a deal is successfully funded.

  • Compensation for consulting or coaching services is separate and clearly defined.

  • BH Capital Funding also earns affiliate compensation from partners.

4. Data Privacy and Security

• Data Protection:

  • Implementation of robust data security measures to protect client information.

  • Compliance with all relevant data privacy regulations to ensure the confidentiality and integrity of client data.

5. Clear Roles and Responsibilities

• Broker Responsibilities:

  • Providing clients with comprehensive information about the alternative financing process and terms.

  • Conducting thorough due diligence to match clients with suitable funders.

  • Ensuring full compliance with all regulatory requirements.

• Merchant Expectations:

  • Providing accurate and complete information during the application process.

  • Adhering to the terms and conditions of the alternative financing agreement.

6. Brand and Reputation Building

• Professional Development:

  • Continuous education and certification for BH Capital Funding brokers to stay updated on industry trends and regulatory changes.

  • Participation in industry conferences and events for knowledge enhancement and networking.

• Client Engagement:

  • Building long-term relationships through effective communication and transparent practices.

  • Encouraging client feedback to improve services and address concerns promptly.

7. Leveraging Technology

• Efficiency and Automation:

  • Utilization of advanced CRM software and technological tools to streamline processes and enhance client experience.

  • Automated systems for due diligence, client onboarding, and follow-ups to reduce manual errors and improve efficiency.

8. Client-Centric Approach

• Personalized Services:

  • Offering tailored consulting and coaching services that provide additional value to clients.

  • Regular check-ins and updates to ensure clients are satisfied with the services provided.

9. Comprehensive Service Offering

• Financing Solutions:

  • A range of financing options including working capital loans, lines of credit, bridge financing, and invoice factoring, designed to meet diverse business needs.

  • Swift approvals and funding within 24 hours in most cases, ensuring timely financial support for businesses.

• Advisory Services:

  • Wealth and financial advisory services to assist clients in achieving long-term financial goals.

  • Business debt solutions, including debt management and negotiation strategies.

• Protection Plans:

  • Life and key-person insurance plans to provide financial security against unforeseen circumstances.

  • Buy-sell agreements to ensure smooth business transitions and protect stakeholders' interests.

10. Partner Vetting and Relationship Management

• Reputation and Performance:

  • We partner with funders and service providers with strong reputations and proven track records in the industry.

  • Regular assessments of partner performance to ensure they meet our high standards for service quality and reliability.

• Legal and Compliance:

  • Thorough vetting of partners for compliance with all relevant laws and regulations, ensuring they adhere to ethical and legal standards.

  • Continuous monitoring of partners to maintain compliance and address any issues promptly.

• Ongoing Relationships:

  • Maintaining open and transparent communication with partners to foster long-term, mutually beneficial relationships.

  • Commitment to collaborating with partners who share our dedication to ethical practices and client satisfaction.

11. Syndication of Deals

• Deal Syndication:

  • BH Capital Funding may syndicate deals to spread risk and ensure access to sufficient capital for large transactions.

  • Partnering with multiple funders allows us to offer more competitive terms and diversify funding sources.

  • Syndication ensures that merchants receive the best possible financing options tailored to their specific needs.

BH Capital Funding is dedicated to maintaining the highest standards of transparency, compliance, and ethical practices. Our good faith broker agreement is a testament to our commitment to our clients and the alternative financing industry.

Contact Information:

• Raphael Yerushalmi: Raphael@bhcapitalfunding.com,

• Eyal Yerushalmi: Eyal@bhcapitalfunding.com

• Daniel Speiss: Daniel@bhcapitalfunding.com