CA SB1235

Requires commercial financing providers to disclose specified information to recipients at the time of extending a financing offer, including total funds provided, total dollar cost, payment terms and frequency, and prepayment policies, with recipient signature required before transaction completion.

Mandates disclosure of the total cost of financing expressed as an annualized rate until January 1, 2024, after which this requirement is removed.

Allows providers offering factoring or asset-based lending to provide alternative disclosures based on example transactions rather than specific transaction terms.

Exempts depository institutions, Farm Credit Act lenders, real property-secured transactions, vehicle dealer and rental company financing of $50,000 or more, and providers making five or fewer commercial financing transactions annually in California.

Requires the Commissioner of Business Oversight to adopt regulations governing disclosure requirements and methods of calculation, with providers not required to comply until final regulations become effective; makes violations of these provisions subject to California Financing Law examination and enforcement authority.