Legal Velo Capital Funding
State Disclosures & Licenses
Draft — pending legal review. Counsel hasn’t reviewed this document yet, so it may change.
On this page6 sections
This page collects the disclosures that apply to the financing described on vcfus.com, a summary of the state laws that shape how commercial financing is offered, and Velo Capital Funding’s registrations.
1. Velo Is a Broker, Not a Lender
Velo Capital Funding is a commercial financing broker. We are not a lender or funder, and we don’t make credit decisions or set the terms of any financing. We work with a wide range of third-party lenders and funders to find financing for your business. The lender or funder you choose decides whether to approve your request, sets the terms, provides the funds and services the account. Velo may receive compensation from the lender or funder that provides your financing. Where state law requires, that compensation is shown in the disclosure you receive before you sign.
2. Our Disclosures
These disclosures appear at the bottom of every page of our site. They’re numbered the same way here.
1. Velo Capital Funding is a commercial financing broker, not a lender. Financing is provided by third-party lenders and funders, subject to their approval. Terms vary. Velo works with a wide range of lenders and funders to find a funding solution for your business and may receive compensation from the lender or funder that provides your financing.
2. Financing options available through Velo include same-day funding, lines of credit, term loans, equipment financing, SBA loans, invoice factoring and home equity lines of credit. For every product, the lender or funder makes the decision, sets the terms and provides the funds. SBA loans are made by SBA-participating lenders.
3. All financing is for business purposes only and is subject to application, review and approval. Not every business will qualify. Costs, terms and timing vary.
4. Before you sign, you’ll receive the written cost disclosure your state requires. In some states, including California and New York, it includes an estimated annual percentage rate (APR) for comparison.
5. Velo is not affiliated with or endorsed by the U.S. Small Business Administration or any government agency.
6. Examples, amounts and figures shown on this site, including in the funding planner, are illustrative only and are not an offer or commitment to fund. Quotations from third parties are shown as general commentary and do not imply their endorsement of Velo.
3. How Our Products Work
These are the disclosures that appear on our product pages. The lender’s or funder’s offer, the disclosure your state requires and your signed agreement with them are what govern your transaction.
How same-day funding works. Velo Capital Funding is a commercial financing broker, not a lender. Financing is provided by third-party lenders and funders, subject to their approval. Terms vary. Same-day business funding is offered by third-party funders. It is typically structured as the funder's purchase of an agreed percentage of your business's future receivables (the "Purchased Amount") for an upfront amount paid to you (the "Purchase Price"). Structured this way, it is not a loan and the funder does not charge interest.
The funder receives the agreed percentage of your receivables as your business collects them. For convenience, remittances may be made in fixed daily or weekly amounts based on a good-faith estimate of that percentage. You can request a reconciliation from the funder, as described in your agreement, and remittances will be adjusted to reflect your actual receivables. There is usually no fixed term. If your receivables slow down, your remittances slow down too.
Cost. The cost is the difference between the Purchased Amount and the Purchase Price, plus any fees listed in the funder's agreement. Fees may reduce the amount deposited into your account. Before you sign, you'll receive a written disclosure of the total cost and terms as required by your state. In some states, including California and New York, it shows an estimated annual percentage rate (APR) so you can compare offers.
Other terms. The funder may file a UCC financing statement and take a security interest as described in your agreement. Each owner may be asked to sign a guaranty of the business's performance of its obligations under the agreement, for example that information provided is accurate and that receivables are not diverted. This is not a guaranty that receivables will be generated. Remittance methods vary by state and by funder. Funding is available for business purposes only and is subject to approval by the funder. Amount, cost, timing and remittance terms are set by the funder and depend on your business's receivables and other factors, and funding on the day you are approved is not guaranteed. Not every business qualifies. Velo is a broker: it may present offers from more than one funder and may receive compensation from the funder you choose.
For loans and invoice factoring from third-party lenders and factoring companies:
Lines of credit, term loans, equipment financing, SBA loans and home equity lines of credit are made by third-party lenders, subject to their credit approval and terms. Velo is not the lender and may receive compensation from the lender. APRs, fees and terms vary by lender and are disclosed by the lender before you sign.
SBA loans are made by SBA-participating lenders. Velo Capital Funding is not affiliated with or endorsed by the U.S. Small Business Administration. If Velo is paid for referring or helping prepare an SBA loan, that compensation is disclosed to you on SBA Form 159.
Invoice factoring is the sale of your business’s invoices to a third-party factoring company, which decides whether to purchase them and sets the advance rate and fees. Velo is not the factor and may receive compensation from it.
4. State Commercial Financing Laws
A number of states require providers of commercial financing, and in some cases brokers, to give you a written disclosure before you sign, to register with a state regulator, or both. Here’s a plain-English summary of the main laws. It’s general information, not legal advice, and it may not list every requirement or exemption. The disclosure you receive with your offer is what governs your transaction.
| State and law | What it means for you |
|---|---|
| California Cal. Fin. Code § 22800 et seq.10 CCR § 900 et seq.SB 362 | For commercial financing of $500,000 or less, you get a disclosure before you sign that shows the total cost and an estimated annual percentage rate (APR). Any charge or pricing figure stated during the application process must include the APR. |
| New York N.Y. Fin. Serv. Law Art. 823 NYCRR 600 | For commercial financing of $2.5 million or less, you get a disclosure with the total cost and an estimated APR. If a broker is involved, it explains how the broker is paid and by whom. |
| Utah Utah Code Title 7, Ch. 27 | For commercial financing of $1 million or less, you get a disclosure that includes amounts paid to brokers. Providers register with the Utah Department of Financial Institutions. |
| Virginia Va. Code § 6.2-2228 et seq.10VAC5-240 | For sales-based financing of $500,000 or less, you get a disclosure with your specific offer. Providers and brokers register with the State Corporation Commission. Confessions of judgment are prohibited. |
| Connecticut Public Act 23-201 | For sales-based financing of $250,000 or less, you get a disclosure that includes any broker compensation. Providers and brokers register with the Department of Banking through NMLS. |
| Texas Tex. Fin. Code Ch. 3987 TAC §§ 86.301–86.322 | For sales-based financing under $1 million, you get a disclosure that reflects your specific offer, including any broker compensation. Providers and brokers register with the Office of Consumer Credit Commissioner (OCCC). Automatic debits are allowed only for providers that hold a perfected first-priority security interest in your accounts receivable. |
| Florida Fla. Stat. §§ 559.961–559.9615 | For commercial financing of $500,000 or less, you get a disclosure before you sign. Brokers may not charge advance fees or make false or misleading statements, and their ads must show their actual business address and phone number. |
| Georgia O.C.G.A. § 10-1-393.18 | For commercial financing of $500,000 or less, you get a disclosure before you sign. Brokers may not charge advance fees or make false or misleading statements. |
| Kansas K.S.A. 75-783 to 75-787 | For commercial financing of $500,000 or less, you get a disclosure before you sign. Brokers may not charge advance fees or misrepresent the financing. |
| Missouri Mo. Rev. Stat. § 427.300 et seq. | For commercial financing of $500,000 or less, you get a disclosure at or before signing. Brokers register with the Division of Finance. |
| Louisiana La. R.S. 9:3137.10 | For revenue-based financing, you get a written disclosure at or before signing. |
Remittance methods vary by state and by funder. Your agreement with the funder describes how remittances work for your business.
5. Registrations and Licenses
Registration details will be listed here.
6. Questions and Complaints
If you have a question or a complaint about Velo, or about someone who referred you to us, please contact us first so we can make it right:
- info@vcfus.com
You can also contact the financial regulator in your state.