MCA dataset
Merchant Cash Advance Disclosure Laws by State
11 states have one in force. Which states make a merchant cash advance provider disclose its terms, which require an estimated APR, and which restrict confessions of judgment. Every row links the statute or regulator it came from, and the whole table is yours to download.
In force
11 states, the earliest since Jan 2022
Estimated APR required
New York and California
Provider registration
4 states: Utah, Virginia, Connecticut and Texas
Not on this page
Legal advice, and broker duties. Ask a lawyer licensed in your state.
How we are paidWhich states regulate merchant cash advances?
New York, California, Utah, Virginia, Georgia, Florida, Connecticut, Kansas, Missouri, Texas and Louisiana have commercial financing disclosure laws in force that reach merchant cash advances, and Vermont follows on Jul 2027. Most cover only deals below a size threshold.
- In force
- 11
- The earliest since Jan 2022
- Enacted, takes effect later
- 1
- Vermont, from Jul 2027
- Estimated APR required
- 2
- New York and California
- Provider registration
- 4
- Utah, Virginia, Connecticut and Texas
When each law takes effect
Every date is in the table- New YorkJan 2022
- VirginiaJul 2022
- CaliforniaDec 2022
- UtahJan 2023
- GeorgiaJan 2024
- FloridaJan 2024
- ConnecticutJul 2024
- MissouriFeb 2025
- LouisianaAug 2025
- TexasSep 2025
- VermontJul 2027
Not on the line: Kansas, effective date not confirmed.
What does a disclosure law make the funder tell you?
The details differ by state, but the disclosure states ask for the same core figures before you sign: the amount you will receive, the total you will repay, what the financing costs, how and how often you pay, and what fees and prepayment terms apply. New York's rules go furthest. They also require an estimated term, an estimated APR, and an itemization whenever what reaches your account is less than the amount financed, which is how a fee withheld at funding becomes visible.
If your state is on the list and your deal is within its scope, you should have received that disclosure before signing. Whether what you were given meets the requirement is a legal question.
Which states require an estimated APR?
New York and California. Both point to the federal Truth in Lending rules (Regulation Z, Appendix J) for the calculation, with payments projected from your sales history or from the provider's own underwriting estimate. Vermont's law adds an APR requirement when it takes effect. The factor rate to APR calculator uses the same method, so you can check a figure you were given, or produce one where your state does not require it.
Which states restrict confessions of judgment or automatic debits?
Confession of judgment
ProhibitedActions in Virginia
Virginia prohibits confession-of-judgment provisions in sales-based financing and requires actions to be brought in Virginia (Va. Code § 6.2-2234).
See the row in the tableConfession of judgment
Contract void and unenforceableAutomatic debit limited
Texas makes a commercial sales-based financing contract containing a confession-of-judgment provision or any similar provision void and unenforceable, not just that clause (Tex. Fin. Code § 398.055). It also bars an automatic debit mechanism unless the provider holds a perfected first-priority security interest (§ 398.056). Have counsel assess whether these provisions apply to your agreement and enforcement facts.
See the row in the tableConfession of judgment
VoidFrom July 1, 2027
Vermont voids confessions of judgment and restricts automatic debits from July 1, 2027 (8 V.S.A. § 2247).
See the row in the tableConfession of judgment
Filing county limited
New York has, since August 2019, allowed a confession of judgment to be filed only in the county where the defendant lived when it was signed or when it is filed (CPLR 3218).
See the row in the table
If a funder has already frozen your account, read what happens when you default on a merchant cash advance and call a lawyer before you call anyone else.
What if your state has no law?
The following entries record the dataset's last checked status, not a live legislative-status feed. No enacted disclosure law confirmed here does not mean no protection: contract law, your state's business practices law and the courts still apply, and your contract may choose another state's law. The legal picture in general terms is on its own page.
Maryland
This dataset records no enacted commercial financing disclosure law for Maryland as of Sep 2026. The linked bills are legislative proposals, not evidence of an in-force disclosure requirement. Check the official records below for subsequent action and ask counsel which rules apply to your transaction.
Illinois
This dataset records no enacted commercial financing disclosure law for Illinois as of Sep 2026. The linked bills are legislative proposals, not evidence of an in-force disclosure requirement. Check the official records below for subsequent action and ask counsel which rules apply to your transaction.
New Jersey
S1760 (2026-2027 session) is recorded as pending in this dataset; its current status has not been confirmed. A proposal is not an enacted requirement. Check the official records below for subsequent action and ask counsel which rules apply to your transaction.
The dataset
State by state
Provider obligations as written in each state's law, checked Sep 2026. Scope is the law's own threshold. Anything the research could not confirm against a primary source is listed as an open question under the table.
| State | Law | In force | Scope | Estimated APR | Provider registration | Also |
|---|---|---|---|---|---|---|
| New York | LawN.Y. Fin. Serv. Law §§ 801-812; 23 NYCRR Part 600sales-based financing (FSL § 801(j)) | In forceJan 2022 | ScopeExempt: individual transaction over $2,500,000 (§ 802(g)); ≤5 transactions/12 months (§ 802(f)) | Estimated APRYes | Provider registrationNo | Also
|
| California | LawCal. Fin. Code §§ 22800-22807; 10 CCR §§ 900-956; Cal. Civ. Code §§ 1799.300-1799.304; 10 CCR §§ 1060-1062sales-based financing (10 CCR 900); statute covers accounts receivable purchase transactions | In forceDec 2022 | Scope'Recipient' = offer ≤ $500,000 (§ 22800(n)) | Estimated APRYes | Provider registrationNo | AlsoNone |
| Utah | LawUtah Code §§ 7-27-101 to 7-27-301accounts receivable purchase transaction | In forceJan 2023 | ScopeExempt: transaction of more than $1,000,000 (§ 7-27-102(11)); provider with ≤5 transactions/12 months | Estimated APRNo | Provider registrationYes | AlsoNone |
| Virginia | LawVa. Code §§ 6.2-2228 to 6.2-2238; 10VAC5-240sales-based financing (incl. true-up) | In forceJul 2022 | ScopeExempt: single transaction over $500,000; ≤5 transactions with a recipient in 12 months (§ 6.2-2229) | Estimated APRNo | Provider registrationYes | Also
|
| Georgia | LawO.C.G.A. § 10-1-393.18accounts receivable purchase transaction | In forceJan 2024 | ScopeExempt: transaction of more than $500,000; provider with ≤5 transactions/12 months | Estimated APRNo | Provider registrationNo | Also
|
| Florida | LawFla. Stat. §§ 559.961-559.9615accounts receivable purchase transaction | In forceJan 2024 | ScopeExempt: transaction of more than $500,000; ≤5 transactions/12 months | Estimated APRNo | Provider registrationNo | AlsoNone |
| Connecticut | LawConn. Gen. Stat. §§ 36a-861 to 36a-872sales-based financing (incl. true-up) | In forceJul 2024 | Scope'Commercial financing' = sales-based financing not exceeding $250,000 (§ 36a-861(1)) | Estimated APRNo | Provider registrationYes | Also
|
| Kansas | Law2024 Kan. Sess. Laws ch. 29accounts receivable purchase transaction (includes cash receipts) | In forceNot confirmed | ScopeExempt: transaction of more than $500,000; ≤5 transactions/12 months | Estimated APRNo | Provider registrationNo | AlsoNone |
| Missouri | LawRSMo § 427.300accounts receivable purchase transaction | In forceFeb 2025 | ScopeExempt: transaction of more than $500,000; ≤5 transactions/12 months | Estimated APRNo | Provider registrationNo | AlsoNone |
| Texas | LawTex. Fin. Code ch. 398; 7 TAC §§ 86.301-86.322commercial sales-based financing (incl. true-up) | In forceSep 2025 | ScopeDisclosures for specific offers of less than $1 million (§ 398.051(a)) | Estimated APRNo | Provider registrationYes | Also
|
| Louisiana | LawLa. R.S. 9:3137.10revenue-based financing transaction | In forceAug 2025 | ScopeNo threshold or exemptions in enacted text | Estimated APRNo | Provider registrationNo | Also
|
| Vermont | Law8 V.S.A. § 2247sales-based financing (incl. sale/assignment of future receivables) and factoring | In forceFrom Jul 2027 | ScopeSection does not apply to transactions of $1,000,000 or more (§ 2247(b)(4)) | Estimated APRYes | Provider registrationYes | Also
|
Open questions the research could not confirm
18 across 11 statesNew York1 open
- Enacting bill and effective date of GBL § 349 'abusive' amendment (reported FAIR Business Practices Act, eff. 2026-02-17).
California4 open
- Whether § 22806(b) APR restatement reaches brokers.
- Whether brokers are 'covered providers' for 10 CCR 1062 report.
- SB 666 effective date on primary page.
- 10 CCR text read via LII mirror (DFPI PDF blocked).
Utah2 open
- 2022 bill number.
- Whether later amendments added broker duties.
Georgia1 open
- Governor signature date (reported 2023-05-01).
Florida1 open
- Bill number (reported HB 1353).
Connecticut1 open
- NMLS registration mechanics (DOB page not opened).
Kansas2 open
- Exact effective date.
- K.S.A. codification.
Missouri2 open
- Whether Division of Finance declared rulemaking intent.
- Content of 2025 amendment.
Texas2 open
- Governor signature date (reported 2025-06-20).
- Renewal deadline: statute Jan 31 vs OCCC Nov 1-Dec 31 window.
Louisiana1 open
- Exact signature date (June 2025).
New Jersey1 open
- Current status.
A research summary from each state's statutes and regulator pages, checked Sep 2026, not legal advice. Laws and regulations change, and whether one applies to your deal depends on facts only a lawyer can weigh. Spotted a change? Write to [email protected].
Frequently asked questions
As of Sep 2026, 11 states have commercial financing disclosure laws in force that reach merchant cash advances: New York, California, Utah, Virginia, Georgia, Florida, Connecticut, Kansas, Missouri, Texas and Louisiana. Vermont has enacted one that takes effect later. Most apply only below a size threshold and exempt providers that do only a handful of deals a year.
New York and California require providers to disclose an estimated annual percentage rate on sales-based financing, calculated under the federal Regulation Z Appendix J rules. Other disclosure states require the total repayment, the cost and the payment terms, but not an APR.
It depends on the state. Virginia prohibits confession-of-judgment provisions in sales-based financing. Texas § 398.055 makes a commercial sales-based financing contract containing a confession of judgment provision or any similar provision void and unenforceable, not merely the clause. Vermont's restriction takes effect in July 2027. New York has limited since 2019 where a confession of judgment can be filed: only in the county where the defendant lived when it was signed or filed. Ask a lawyer licensed in the relevant state how these rules apply to your contract and any enforcement action.
Not necessarily. No disclosure law means no state-specific disclosure form, but general contract law, the state's consumer and business practices law and the courts still apply, and a contract may choose another state's law. If an advance is already in trouble, speak to a lawyer in your state before you sign anything new.
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