The California Department of Financial Protection and Innovation (DFPI) wants to hear from small businesses that may have fallen prey to unfair, deceptive, or abusive practices in connection with a financial product known as a merchant cash advance (MCA). An MCA is a type of financing in which a business is paid a lump sum of cash up front in exchange for a percentage of the business’s future sales or revenue.
DFPI regulations that became effective October 1, 2023 provide important protections for small businesses, family farms, and nonprofits operating in California. These rules prohibit commercial financing providers — including those offering MCAs — from engaging in unfair, deceptive, or abusive acts or practices.
Additionally, as of December 9, 2022, companies that offer commercial financing products — including MCAs — are required to provide clear disclosures.
Let Your Voice Be Heard
If you are a small business that has been misled, treated unfairly, or did not receive proper disclosures in connection with an MCA or other commercial financing product, submit a complaint at dfpi.ca.gov/submit-a-complaint.