California · Business Funding
Merchant Cash Advance & Business Funding in California
California has 4.2 million small businesses — more than any other state in the country — and an unusually diverse economy. Hospitality, healthcare, professional services, retail, and the long tail of consumer-tech-adjacent SMBs all drive demand for working capital that doesn't depend on perfect credit. Commera matches CA owners with 3–5 funding partners rather than blasting your application across 50 lenders, and we work only with funders that follow California's commercial financing disclosure law to the letter.
By Filip Kozina · Co-Founder, Commera Funding
Reviewed June 8, 2026
What California's commercial financing law means for you
California Commercial Financing Disclosure Law (CFDL / SB 1235)
Effective: December 9, 2022 (rules finalized by DFPI)
Citation: Cal. Fin. Code §§ 22800–22805 (commonly cited as SB 1235); DFPI implementing regulations effective Dec 9, 2022
California requires non-bank commercial financing providers — including merchant cash advance funders — to give every prospective business a standardized written disclosure BEFORE the funding agreement is signed. The disclosure must include the total amount of financing, the dollar cost of financing, the term, the periodic payment amount, the method of repayment, prepayment terms, and an annualized rate expressed as an APR-equivalent. The rate disclosure has to follow the formula in the DFPI regulations — funders can't substitute their own math.
Applicability
Applies to non-bank commercial financing transactions of $500,000 or less where the business is principally directed or managed from California. Banks and bank-affiliated entities are exempt under federal preemption. Financings over $500K and real-estate-secured transactions are excluded.
What you should expect
- A formal pre-signing disclosure document — not just a term sheet — from your funder
- An APR-equivalent figure on every CA disclosure (this is the law, not optional)
- Itemized fees and the total dollar cost of the financing
- Clear language on prepayment — whether you save anything by paying early
This is plain-English context, not legal advice. Disclosure obligations fall on the funder/provider, not the broker. Commera works only with funders we've verified follow California's CFDL. Confirm specific compliance questions with qualified counsel.
Funding for California's key industries
Restaurants & food service
California's restaurant industry — concentrated in LA, the Bay Area, and San Diego — runs on thin margins and seasonal swings. MCA fits owners covering equipment, inventory pre-buys, or payroll bridges between cash-flow cycles.
Healthcare practices
Independent medical, dental, and specialty practices in California use working capital for equipment, build-outs, and bridging insurance reimbursement gaps. Revenue is predictable, which usually translates into stronger terms.
Professional services
Legal, accounting, marketing, and consulting firms throughout the state use short-term capital to bridge accounts receivable when client payment terms stretch.
Retail & e-commerce
From brick-and-mortar boutiques to LA / Bay Area e-commerce sellers, retail businesses use MCA for inventory pre-buys ahead of holiday and seasonal demand.
How funding works for California businesses
1. Apply in 5 minutes
Tell us your monthly revenue, time in business, and what you need the capital for. No hard credit pull — we use a soft inquiry. California businesses go through the same pre-qual as any other state.
2. We hand-match 3–5 funders
We don't blast your file to 50 lenders. We pick the 3–5 funders most likely to fund a business with your shape — and only funders we've verified comply with California's CFDL disclosure requirements.
3. You receive CFDL-compliant offers
Every offer to a California business arrives with the full pre-signing disclosure document required by SB 1235 — total cost, APR-equivalent, periodic payment, prepayment terms. Funders that won't disclose those things don't get California applicants from us.
4. Funded in 24–48 hours after docs
Once you accept an offer and your bank statements clear, funds typically wire in 24–48 hours. We stay in the loop as the broker until the deal closes.
Common questions from California owners
Is a merchant cash advance legal in California?
Yes — MCAs are legal for commercial purposes in California. They're regulated under the Commercial Financing Disclosure Law (SB 1235), which requires non-bank funders to give you a standardized disclosure before you sign. They are not consumer loans and don't fall under California's consumer-credit usury caps.
What does SB 1235 require my funder to disclose?
Before signing, you must receive: total funding amount, dollar cost of financing, term, periodic payment amount, repayment method, prepayment terms, and an APR-equivalent calculated per the DFPI's standardized formula. If a funder won't give you a written disclosure that includes all of this, do not sign.
Does Commera serve all of California?
Yes — we accept applications from businesses with principal operations anywhere in California, from LA to the Bay Area to San Diego to the Central Valley. There's no city restriction within the state.
How fast can a California business actually get funded?
Pre-qualified offers typically come back in 2–4 business hours. Once you accept and your documentation is in, funds typically wire within 24–48 hours. The CFDL disclosure step adds about 15 minutes of review time per offer — it doesn't materially slow the process.
See your California offers in 2–4 hours.
Three quick questions, then we shop your file across California-active funders and bring back the compliant offers.
Start your pre-qual