California lending companies have been under immense legal pressure lately, with lots of lawsuits being filed in the state. Many cash advance lending companies have found a new road to take in order to avoid some of these legal actions; they are getting California lending licenses. These licenses allow companies to provide loans to merchants in the state. These loans can turn nearly the same types of profit margins that lenders get for cash advance loans. Read on to find out more about the process for yourself…
To access the application for a California Lending License, one must visit the California Department of Business Oversight. There, you get the form that is called the “Application for a License under the California Finance Lenders Law.” Like you might expect, this application form is pretty long and you have to fill in a lot of details. That’s no big deal, though. The majority of the information that you provide is meant to help the state know the basics about your business and the staff who will handle lending processes. Be sure to look over the form several times and make sure that you’ve filled out everything properly in order to avoid slowing the process down or that may lead to your application getting rejected.
The first part of the forms are all about basic company information. It is absolutely imperative that all fields are filled out. Missing only one can cause the application to get rejected. Even if you find a question that does not apply to your company, it is better to fill in N/A, instead of leaving a section blank. This is good practice, and will prevent you from accidentally not filling out any of the information needed to succeed with your license application.
When you fill out the application, you will have to fill in the person that will run the location where lending takes place. The state expects the person who is listed to be physically present at the location specified. To make a long story short, you cannot run a California office from your remote office in Ohio or any other state. This can be frustrating, and you will have to fill out additional forms if your primary location is out of state. It is a bit easier if your headquarters are located in California.
You will also be asked to provide some documentation, like balance sheets for the lending company. Be sure to get this paperwork lined up prior to applying. If you have a financial professional available, get them to assist you with putting this together. Newer companies may have a tough time with this aspect, and it is possible that your balance sheet may get rejected. Additionally, you will need a surety bond for $25,000. There are plenty of bonding companies around that you can go to and get one. You’ll also fill out a questionnaire that asks for in depth information about the officers and managers, going back as far as ten years.
Once you have everything done, you’ll submit your application. But don’t expect to get fast results. It can take up to three months in order to get your application approved. Once you get approved, you are ready for action. Just make sure that you take your time on the application process and be as honest and detailed as possible when filling out the forms/providing the necessary documentation. Good luck in your quest to get a California Lending License.
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