{"id":372,"date":"2019-07-12T01:00:42","date_gmt":"2019-07-12T01:00:42","guid":{"rendered":"https:\/\/www.startupcompanycounsel.com\/blog\/?p=372"},"modified":"2019-08-02T07:27:37","modified_gmt":"2019-08-02T07:27:37","slug":"do-i-need-a-california-lenders-license","status":"publish","type":"post","link":"https:\/\/www.startupcompanycounsel.com\/blog\/do-i-need-a-california-lenders-license\/","title":{"rendered":"Do I Need a California Lender\u2019s License?"},"content":{"rendered":"

In the State of California<\/a>, a finance lender is an individual who is in the business of making commercial and consumer loans. The purpose of a California finance lender\u2019s license is to allow the holder of the license an exemption from the California Constitution\u2019s usury provisions. Some types of loan transactions, like retail installment sales finance contracts that are associated with automobile sales, for example,are not subject to California\u2019s financing laws.<\/p>\n

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In addition to lending activities, a license is also required under California law for some types of brokerage activities. A broker is an individual who is in the business of negotiating, in connection with loans that a finance lender makes. A broker\u2019s license, therefore, allows for the brokering of loans with licensed finance lenders \u2013 but not with others.<\/p>\n

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Businesses are not one size fits all. The skilled San Jose financing lawyers at Startup Company Counsel can review the individual circumstances of your business and determine whether you need to obtain a<\/p>\n

California lender\u2019s license<\/h1>\n

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Who Must Obtain a Lender\u2019s License?<\/h2>\n

Generally speaking, under the law<\/a>, any individual who is engaged in the business of being a finance broker or a finance lender must obtain a lender\u2019s license in the State of California.<\/p>\n

The law, however, does make some exceptions for individuals and legal entities who have their licenses through other regulatory agencies. Some legal entities which are not required to be licensed under the California Finance Lenders Law (CFLL) include the following:<\/p>\n