Small Business Borrowing Bill of Rights

Remember the days, when mortgage companies would lend money to anyone who could fog a mirror?  And it was impossible to truly understand rates and fees with inflated ARMs? After the mortgage lending crisis, the feds stepped in and increased regulation to protect consumers and the economy alike.

It’s not too different today with nonbank business lenders.  Rates run the gamut from 1% to 30%; from weekly rates to monthly rates; from origination fees to closing fees.  It’s the wild west all over again, with little regulation.


To avoid the feds stepping in,  a coalition of non-bank and small-business lenders joined together to launch a “Small Business Borrowers Bill of Rights”.

The Bill of Rights outlines six key rights established include:

  1. The right to transparent pricing and terms, including a right to see an annualized interest rate and fees.
  2. The right to non-abusive products, so that borrowers don’t get trapped.
  3. The right to responsible underwriting, so that borrowers are not put into loans that they cannot repay.
  4. The right to fair treatment from brokers, so that borrowers are not steered to the most expensive loans that pay the broker the highest commission.
  5. The right to inclusive credit action, without discrimination.
  6. The right to fair collection practices, to prevent harassment.

We applaud the creation of the Bill of Rights. Some nonbank lenders and funding sources still make it too difficult for borrowers to understand the true cost of financing before signing on the dotted line

If you want to work with a factoring company that has been conducting business with these principles in mind for nearly 20 years, contact Universal Funding at 1-(800) 405-6035 or fill out a rate form and we will have a rep reach out to you immediately.


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