State commercial financing disclosure laws, as of October 2026

A merchant cash advance is generally structured as a purchase of future receivables, not a loan, so federal consumer lending rules like TILA usually do not reach it. State commercial financing disclosure laws were written to fill that gap. In broad terms, a provider (the lender or funder) must give the business a standard disclosure at or before signing, showing things like the total amount of funds provided, the amount actually disbursed, the total repayment amount, estimated payment amounts and frequency, and in some states an estimated APR.

Most of these laws apply only below a dollar threshold, and several exempt providers that do only a handful of transactions a year. The details differ by state, which is why counsel should build any rules table you rely on.

Venable's March 2026 overview lists ten states with commercial financing disclosure laws: California, Connecticut, Florida, Georgia, Kansas, Missouri, New York, Texas, Utah and Virginia. New Jersey had a bill (SB 1760) pending at the time of our research.

Texas HB 700 is the change most brokers need to act on. Based on summaries from Holland & Knight, Sheppard Mullin, FS Vector and the OCCC's own rule notice:

• It was signed in June 2025 and took effect September 1, 2025.
• It covers commercial sales-based financing, which includes merchant cash advances.
• Providers and brokers must register with the Texas Office of Consumer Credit Commissioner (OCCC) through NMLS.
• Registration filings open September 1, 2026. Businesses already operating must register by December 31, 2026; new entrants register before doing business in Texas.
• Registration renews annually, and the law has no de minimis exemption.
• Civil penalties are reported at up to $10,000 per violation.

Reported fees and the exact registration categories depend on the OCCC's final rules. Check the OCCC site and your counsel for the current requirements before you file.

If you are a broker, the practical rule is simple: never quote numbers that differ from the provider's disclosure, never collect a fee from the merchant before funding where that is banned, and keep proof of what you delivered and when.

Whatever your counsel advises, these records make it possible to show what happened on a deal months later:

1. The merchant's state and the deal amount, so you know which rules could apply.
2. The provider's disclosure document, attached to the specific offer or contract.
3. When the disclosure was delivered, by whom, and when the merchant acknowledged it.
4. Any fee charged to the merchant and when it was collected.
5. Your registration or licence number per state, with its expiry date.
6. Consent records for calls, texts and email, with the text the merchant agreed to.
7. An audit trail of who sent what to which lender, and who changed what.

Today you can keep disclosures as documents on the deal and offer, store consent captured by our application form, and rely on the audit log. A compliance pack with state disclosure tracking and a broker licence registry is coming soon; see the roadmap.

California and New York require an estimated APR in the provider's disclosure, calculated by methods set out in their regulations. A quick estimate from a factor rate is useful for comparing offers, but it is not the regulated figure. Our factor rate calculator shows an effective APR estimate with that caveat.

• Confession of judgment: New York banned COJs against out-of-state merchants in 2019; other states restrict them too.
• TCPA and texting: marketing calls and texts to mobile numbers need prior express written consent; the FCC's one-to-one consent rule was vacated and dropped in 2025.
• CAN-SPAM: commercial email needs an unsubscribe and a physical address, B2B included.