Regulatory
Utah's Commercial Financing Registration and Disclosure Act
Utah chose registration and plain cost disclosure over an APR mandate. Here is how that works in practice.
July 16, 2024 · 6 min read
Registration first
Utah's SB 183 requires providers and brokers of commercial financing to register annually with the Department of Financial Institutions and to maintain that registration to transact in the state.
Registration creates a public list, which is itself a useful diligence tool for a Utah business owner evaluating an unfamiliar funder.
The disclosure Utah requires
Total funds provided, total funds disbursed to the business, total amount to be paid, total dollar cost, the payment schedule, and any prepayment charge or lack of discount.
Utah stops short of requiring an annualized rate, on the reasoning that projected-sales APRs are inherently estimates.
Comparing offers under a Utah disclosure
Without an APR line, do the conversion yourself: total dollar cost divided by funds provided, divided by expected months, times twelve. Two minutes of arithmetic restores comparability.
Ask for expected term in writing — under a Utah sheet, term is the variable that changes the answer most.