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By Travis Yule — CEO & Founder, Full Send Funding
Eleven states require commercial financing disclosures as of September 2026, with thresholds from $250,000 to $2,500,000; only two of them require a rate.
In one sentence: State commercial financing disclosure law is two families, not fifty rules: dollar-cost statutes in Utah, Georgia, Florida, Missouri and Louisiana, annual-rate statutes in New York and California, thresholds from $250,000 to $2,500,000 per transaction, and thirty-nine states in which no statute was located.
Eleven states require a commercial financing disclosure as of September 2026: New York, California, Utah, Virginia, Florida, Georgia, Connecticut, Kansas, Missouri, Louisiana and Texas. The per-transaction thresholds run from $250,000 in Connecticut to $2,500,000 in New York, only New York and California require an annualised rate, and in the other thirty-nine states this survey located no statute at all.
The usual framing — "a patchwork of state rules" — hides the thing that matters. The statutes are not fifty variations; they are two families. One family, written in Utah, Georgia, Florida, Missouri and Louisiana, makes the provider print the money in dollars: what was provided, what was disbursed after fees, what will be paid back, and the difference. The other, written in New York and California, adds a yearly rate computed the way the federal Truth in Lending Act computes one. The same $100,000 advance is disclosed as "$33,000" in the first family and as "80.6%" in the second, and both numbers are true. A business that understands why they differ can read any offer in any state, including the thirty-nine that require nothing.
This is information, not legal advice; the statute and the contract control, and a commercial attorney in your state should read yours. Every figure below is tied to a section, bill or regulator page on that state's official legislature, code or agency host and cited by number in the notes that follow. Where a threshold, an effective date or a penalty was not read on an official host, the cell says "not read in this survey" rather than borrowing a number from a vendor summary.
The federal Truth in Lending Act does not apply to a business advance. Its exemption section removes from the statute credit transactions involving extensions of credit primarily for business, commercial or agricultural purposes,[1] which is why a consumer auto loan arrives with a federally prescribed disclosure box and a $100,000 working capital advance to an LLC arrives with whatever the agreement happens to say. There is no federal form and no federal regulator whose job is the first page of a merchant cash advance agreement.
What federal law does supply is a method. Regulation Z requires the annual percentage rate to be determined by either the actuarial method or the United States Rule method, and sets out the explanations, equations and instructions for the actuarial method in Appendix J, where the annual rate is the unit-period rate multiplied by the number of unit-periods in a year.[2] New York's statute then borrows that method by citation: the estimated annual percentage rate on a sales-based financing offer must be expressed as a yearly rate inclusive of fees and finance charges and calculated in accordance with Regulation Z, 12 C.F.R. §1026.22, on the estimated term and projected payments.[5] So the federal rule that does not reach commercial credit is, in the two states that require a rate, the rule that defines it.
Everything else — who must disclose, above what size, at what moment, in what format, and what it costs to get it wrong — is state law, and the states that have written it have written it differently.
Every one of these statutes answers some subset of six questions, and the errors come from assuming a statute answers all six.
Who must disclose. The duty falls on the provider — the party that extends the specific offer or consummates the transaction. Several statutes reach brokers separately: Virginia's disclosure must state whether the provider will pay compensation directly to a broker and how much,[20] Kansas bars a broker from assessing, collecting or soliciting an advance fee,[30] and Texas prohibits acting as a commercial sales-based financing broker for compensation without registering first with the Office of Consumer Credit Commissioner.[35] Depository institutions are commonly carved out — Utah exempts them, their affiliates and subsidiaries,[16] and Texas exempts banks, credit unions and their subsidiaries and affiliates.[35]
Above what size the duty stops. Every statute whose threshold this survey read is written for the small end of the market and switches off above a per-transaction figure: $250,000 in Connecticut,[28] $500,000 in California,[10] Virginia,[18] Florida[23] and Kansas,[30] $1,000,000 in Utah[16] and Texas,[35] and $2,500,000 in New York.[4] Six also switch off for the occasional provider — New York, Utah, Virginia and Kansas exempt anyone entering no more than five transactions in twelve months,[4][16][18][30] and Florida and Missouri define "provider" as someone consummating more than five in a calendar year.[22][31]
At what moment. The trigger is either the specific offer or the consummation. New York, Virginia, Connecticut and Texas require the disclosure when a specific offer is extended,[5][20][29][35] and California requires it then plus the recipient's signature on it before consummation;[10] Utah, Florida, Kansas, Missouri and Louisiana key the duty to consummation instead.[14][24][30][31][33] The difference is practical: an offer-time disclosure exists while the business is still deciding, and a consummation-time disclosure can in principle arrive with the signature page.
What it must show. This is the two-family split. The dollar family requires the money in dollars — Utah's four items are the total amount of funds provided, the total amount disbursed if less than that, the total amount to be paid to the provider and the total dollar cost of the transaction,[14] and Florida, Missouri, Louisiana and Georgia open with the same lines, Georgia adding a statement of whether any cost or discount attaches to prepayment.[24][31][33][36] Kansas requires the terms disclosed before or at consummation, and no rate appears in what was read of it.[30] Missouri labels the difference: the Total Dollar Cost of Financing is the total of payments less the total amount of funds provided, including any fees or charges the provider deducted.[31] The rate family adds an annualised figure: New York's estimated APR[5] and California's, which the Department of Financial Protection and Innovation's regulations require alongside the funding amount, the payment, the term and the prepayment terms.[11] Virginia's list sits between them, adding the amounts outside the finance charge, any collateral requirement or security interest, and the broker compensation line.[20]
Whether sales-based financing is in scope. In seven of the eleven, plainly. Virginia's chapter applies to sales-based financing only, defined as a transaction repaid over time as a percentage of sales or revenue in which the payment may rise or fall with volume — including a fixed payment with a reconciliation that adjusts it to a percentage of sales.[17] New York uses the same definition inside a broader statute that also reaches open-end financing, closed-end financing and factoring transactions.[3] Connecticut defines commercial financing itself as a sales-based financing transaction of $250,000 or less.[28] Texas's 2025 act covers commercial sales-based financing and nothing else.[35] Louisiana's 2025 act reaches revenue-based financing transactions.[33] California's regulator names merchant cash advances among the industries its disclosure regulations cover.[11] Florida gets there through its definitions: a commercial financing transaction includes an accounts receivable purchase transaction, in which a business sells its accounts or payment intangibles at a discount to their expected value — and the statute adds that the provider's characterisation of it as a purchase is conclusive that it is not a loan.[22] For Utah, Kansas and Missouri, whether the general "commercial financing transaction" definition captures an advance was not read in this survey.
Who enforces, and what it costs. New York's superintendent may order up to $2,000 per violation, or $10,000 where it is wilful.[6] Florida gives its Attorney General exclusive enforcement authority at $500 per incident, capped at $20,000 for all aggregated violations,[25] and Kansas sets the same two figures, rising to $1,000 per violation after written notice of a prior violation from the Attorney General.[30] Utah, Connecticut and Missouri run theirs through the financial regulator that also takes the registrations,[16][29][32] Virginia registers providers with the State Corporation Commission,[19] Georgia's act names the Attorney General,[36] and Texas authorises a civil penalty.[35]
Those last two answers sit side by side below, with the registration duty and the date each regime began. Every populated cell repeats a figure cited in the state-by-state notes below and carries that note's number; a cell reading "Not confirmed — verify with counsel" is one this survey did not source, not one the statute omits.
Every populated cell repeats a figure this article already cites in the State-by-state notes below and carries that note's citation number as plain text, because a mark inside a table does not render as one. The hosts those notes were read on are nysenate.gov and dfs.ny.gov (New York), leginfo.legislature.ca.gov and dfpi.ca.gov (California), le.utah.gov and dfi.utah.gov (Utah), law.lis.virginia.gov (Virginia), flsenate.gov (Florida), cga.ct.gov and portal.ct.gov (Connecticut), kslegislature.gov (Kansas), finance.mo.gov (Missouri), legis.la.gov (Louisiana), capitol.texas.gov (Texas) and legis.ga.gov (Georgia). "Not confirmed — verify with counsel" means this article sourced no figure for that item — a statement about this survey, not a finding that the statute is silent. Statutes change; the statute and the notes control.
Eleven, as of September 2026. Ten of them — New York, California, Utah, Virginia, Florida, Connecticut, Kansas, Missouri, Louisiana and Texas — were read here with operative detail on an official host. Georgia is the eleventh: Senate Bill 90 of 2023, as passed on the General Assembly's site and carried on the Governor's 2023 signed-legislation list, requires providers to disclose five dollar figures in connection with a commercial financing transaction,[36][39] but its threshold, effective date and code section were not read. A cell reading "not read in this survey" is a statement about this survey, not about the statute.
Every cell was read in a search extract from the state’s official legislature, code or regulator host in September 2026, and the citation for each state is in the State-by-state notes above. "Not read in this survey" means the extract obtained did not carry that item, not that the statute lacks it. "Not confirmed — verify with counsel" means no official extract supported a figure at all. Statutes change; the section controls.
This is the part people skip, and it governs most offers. In thirty-nine states this survey found no commercial financing disclosure statute on the state's own legislature or code site. Two of them have bills: Maryland's House Bill 1007, the Small Business Truth in Lending Act, was read first on February 6, 2026 and carries an October 1, 2026 effective date if it passes,[37] and Illinois's House Bill 2595 would create a Small Business Financing Transparency Act with registration, disclosure, civil penalties and a commercial financing database.[38] Neither was confirmed enacted here, and a bill is not a statute.
The 11 and the 2 are the states for which an official legislature, code or regulator page was located and read in September 2026. The 37 are the states for which no commercial financing disclosure statute was found on the state’s own host in this survey — a statement about the survey, not a finding that none exists. 11 + 2 + 37 = 50.
Absence in a search is not proof that none exists, which is why that table says "located" rather than "none". It is still the operating assumption to make: in most of the country, an offer contains what the provider decided to put in it.
The citations live here rather than in the table cells, because a mark inside a table does not render as one; where the enforcement table above carries a number, it is plain text pointing back to the note it came from. Alphabetically, every state with something to cite.
California — Financial Code Division 9.5, §22800 and following, added by SB 1235, approved by the Governor on September 30, 2018.[9] A "recipient" is a person presented with a specific commercial financing offer of $500,000 or less, the provider must disclose at the time of extending that offer, and must obtain the recipient's signature on the disclosure before consummating the transaction.[10] The Department of Financial Protection and Innovation's regulations took effect December 9, 2022 and require the amount of funding the business will receive, the annual percentage rate, the payment amount, the term and the prepayment details; the DFPI replaced "annualized rate" with "annual percentage rate" to match the calculation method it adopted.[11] The rate requirement originally lapsed on January 1, 2024; SB 33, approved October 7, 2023, removed that and repealed §22803, and carries the provision that no liability arises from an actual APR differing from an estimated APR disclosed in conformity with the commissioner's regulations or orders.[12] SB 362, approved October 6, 2025, bars a provider from using "interest" or "rate" deceptively — naming "simple interest" used for a non-annual rate, and an "X% fee rate" or "Y% factor rate" that diverges materially from the APR.[13] Penalty amounts were not read in this survey.
Connecticut — Public Act 23-201, An Act Requiring Certain Financing Disclosures, substitute Senate Bill 1032,[27] codified at General Statutes §§36a-861 to 36a-872. "Commercial financing" is a sales-based financing transaction of $250,000 or less not primarily for personal, family or household purposes; the act took effect July 1, 2024, providers and brokers register annually with the Department of Banking from October 1, 2024, and registration costs $1,000 initially and $500 each year after by September 15.[28] The Department's guidance prescribes the format and — usefully for a multi-state funder — accepts another state's approved form where it meets or exceeds Connecticut's requirements.[29] The itemised list and the penalty were not read in this survey.
Florida — Florida Statutes §§559.961 to 559.9615, the Florida Commercial Financing Disclosure Law, enacted by CS/HB 1353 in 2023[26] and carried in the 2023 Florida Statutes. A commercial financing transaction is a commercial loan, an accounts receivable purchase transaction or a commercial open-end credit plan for business purposes, and a "provider" is a person consummating more than five of them with a Florida business in a calendar year.[22] The written disclosure comes at or before consummation, beginning with the total funds provided and the total disbursed where fees, a prior balance payoff or a third-party payment made it less; one disclosure per transaction, and none on a later modification or forbearance.[24] Transactions over $500,000 are exempt.[23] The Attorney General has exclusive enforcement authority, at $500 per incident and not more than $20,000 for all aggregated violations.[25]
Georgia — Senate Bill 90 of 2023, as passed and carried on the Governor’s 2023 signed-legislation list.[39] With each transaction the provider must disclose the total amount of funds provided, the total disbursed after any fees, withholdings or third-party payments, the total to be paid to the provider, the total dollar cost, and a statement of whether any cost or discount attaches to prepayment; no broker may solicit or collect an advance fee; and the Attorney General enforces compliance.[36] The threshold, the effective date, the code section and the penalty were not read in this survey — verify with counsel before relying on any figure for Georgia.
Illinois — No enacted statute located. House Bill 2595 of the 104th General Assembly would create the Small Business Financing Transparency Act, with registration for persons providing commercial financing, disclosure requirements including sales-based financing, suspension of registrations, civil penalties and a commercial financing database.[38] Its enactment was not confirmed in this survey.
Kansas — The Commercial Financing Disclosure Act, Senate Bill 345 of the 2024 session. The provider must disclose the terms before or at consummation; the act does not apply to transactions over $500,000, to depository institutions or their parent companies, or to providers consummating no more than five transactions in the state in twelve months; no broker may assess, collect or solicit an advance fee; and the civil penalty is $500 per violation capped at $20,000, rising to $1,000 per violation after written notice of a prior violation from the Attorney General.[30] The effective date and the codified section were not read in this survey.
Louisiana — R.S. 9:3137.10, enacted by Act 198 of the 2025 Regular Session (House Bill 470), effective August 1, 2025.[34] A revenue-based financing transaction requires a written disclosure of its terms at or before consummation, including the total amount of funds provided to the commercial enterprise and the total actually disbursed where fees were deducted or withheld,[33] and the act draws a line between the amounts charged in such a transaction and interest.[34] A dollar threshold and an enforcing agency were not read in this survey.
Maryland — No enacted statute located. House Bill 1007 of the 2026 session, Commercial Financing – Small Business Truth in Lending Act, cross-filed with Senate Bill 881, was read first on February 6, 2026 and referred to Economic Matters; it would add §§12-1301 to 12-1314 to the Financial Institutions Article with disclosure, APR-calculation and repayment-term requirements, and carries an October 1, 2026 effective date.[37] Its passage was not confirmed in this survey.
Missouri — Revised Statutes §427.300 and following, the Commercial Financing Disclosure Law. A "provider" is a person consummating more than five commercial financing transactions with a Missouri business in a calendar year; the disclosure comes at or before consummation; and the Total Dollar Cost of Financing is the total of payments less the total funds provided, including any fees or charges deducted.[31] The Division of Finance registers commercial financing brokers at $100 with the application and $50 on renewal by January 31.[32] A dollar threshold and a penalty were not read in this survey.
New York — Financial Services Law Article 8, §§801 to 812, the Commercial Finance Disclosure Law, with 23 NYCRR Part 600. "Commercial financing" is open-end financing, closed-end financing, sales-based financing, a factoring transaction or another form of financing whose proceeds the recipient does not intend to use primarily for personal, family or household purposes; "sales-based financing" is repayment as a percentage of sales or revenue in which the payment may rise or fall with volume; and a "recipient" is a person who applies and is made a specific offer, never a broker.[3] An individual transaction over $2,500,000 is exempt, as are financing secured by real property, UCC leases and a person making five or fewer transactions in a year.[4] On a specific offer of sales-based financing the provider must disclose the estimated APR — a yearly rate inclusive of fees and finance charges, calculated in accordance with 12 C.F.R. §1026.22 on the estimated term and projected payments, with sales projected by the historical method or the opt-in method.[5] The civil penalty is up to $2,000 per violation, or $10,000 per violation where wilful.[6] The Department of Financial Services adopted Part 600 under §§801 to 811, describing it as standardised disclosure for commercial financing under $2.5 million,[7] and providers using the opt-in method must report their estimated APRs and the actual retrospective APRs of completed transactions to the Department by April 30 each year beginning in 2025.[8] The regulation's compliance date was not read on an official host in this survey.
Texas — House Bill 700 of the 89th Legislature, on disclosures for certain commercial sales-based financing transactions, the effect of certain contract provisions, and broker registration. A provider extending a specific offer of commercial sales-based financing of less than $1,000,000 to a Texas recipient must disclose prescribed information; a person may not act as a broker for compensation without registering first with the Office of Consumer Credit Commissioner and renewing on or before January 31 each year; banks, out-of-state banks, bank holding companies, credit unions and their subsidiaries and affiliates are exempt; and the act authorises a civil penalty. It took effect September 1, 2025.[35] The Finance Code chapter created and the penalty amount were not read in this survey.
Utah — Utah Code Title 7, Chapter 27, the Commercial Financing Registration and Disclosure Act, which requires providers of certain commercial financing products to register with the Department of Financial Institutions and to disclose on each product.[15] Before consummating a transaction the provider must disclose the total amount of funds provided, the total disbursed if less than that, the total to be paid to the provider, and the total dollar cost — four dollar figures and no rate.[14] A transaction over $1,000,000 is exempt, as are depository institutions, their affiliates and subsidiaries, Farm Credit Act lenders, licensed money transmitters and providers consummating five or fewer products in the state in twelve months; the key provisions took effect January 1, 2023.[16] The penalty was not read in this survey.
Virginia — Code of Virginia Title 6.2, Chapter 22.1, Sales-Based Financing Providers. Sales-based financing is repaid as a percentage of sales or revenue with the payment rising or falling with volume, and expressly includes a fixed payment with a true-up reconciling it to a percentage of sales.[17] A single transaction over $500,000 is exempt, as is any person entering no more than five sales-based financing transactions with a recipient in twelve months.[18] Providers register with the State Corporation Commission and obtain authority to transact business in Virginia.[19] At the time of a specific offer the provider discloses, in the Commission's format, the total amount and the disbursement amount after fees, any collateral requirement or security interest, whether a broker will be paid and how much, and the prepayment policy — with an updated disclosure if the recipient later pays off or refinances early.[20] The form is at 10VAC5-240-30.[21] The chapter's effective date and any penalty amount were not read in this survey.
The dollar family and the rate family are not two ways of writing the same number. They answer different questions.
A total dollar cost answers "what does this money cost me, in cash, if I take it and repay it as scheduled". On a $100,000 advance at a 1.30 factor with a $3,000 origination fee deducted, the answer is $33,000 measured against the $97,000 that lands in the account, or $30,000 measured against the $100,000 face amount — and which denominator the form uses is itself a disclosure question, since a $3,000 fee invisible in the factor is nearly a tenth of the cost. That number does not change if the term is four months or eighteen. It is the price of the money.
An annual percentage rate answers "what is that price as a yearly rate on the balance actually outstanding". Because the balance falls with every payment, and because the same $33,000 is paid over a shorter or longer period, the rate moves with the term even when the dollars do not.
On a $100,000 advance at a 1.30 factor with a $3,000 fee deducted, the dollar cost is $33,000 whatever the term, while the actuarial APR runs from 180.3% at 17 weeks to 40.7% at 78 — close to twice the simple annualised figure across the range.
Basis: face $100,000; factor 1.30 (total of payments $130,000); origination fee $3,000 deducted, so funds disbursed $97,000 and finance charge $33,000; level weekly payments of $130,000 ÷ weeks. Simple annualised cost = $33,000 ÷ $97,000 × 52 ÷ weeks. Estimated APR = the weekly rate r solving 97,000 = the sum over k of payment ÷ (1 + r)^k for k = 1 to weeks, × 52 (the 12 C.F.R. §1026.22 actuarial method, nominal rate). Values in percent, one decimal.
Read the two series against each other. The lower one is the arithmetic most owners do in their heads: $33,000 on $97,000 is 34.0%, and scaling that to a year at 39 weeks gives 45.4%. Nobody requires that number, and it is wrong for a level-payment instrument, because it treats the full $97,000 as outstanding for the whole term when on average about half of it is. The upper series is the actuarial method New York borrows from Regulation Z — the weekly rate that discounts thirty-nine payments of $3,333.33 back to $97,000, multiplied by fifty-two — and it is 80.6%.[2][5] On a level-payment schedule the actuarial rate runs at close to twice the simple one across the whole range, from 180.3% against 104.1% at seventeen weeks to 40.7% against 22.7% at seventy-eight.
Neither family is lying. The dollar family is telling you what the money costs; the rate family is telling you how fast. A business that will hold the money for four months and earn $60,000 with it is right to look at the $33,000; the same business comparing two nine-month offers is right to look at the APR, because the term is fixed and the rate is the only thing left to compare. The mistake is using one number for the other question — and the reason the two families coexist is that the legislatures disagreed about which question mattered more.
Here is the whole thing with numbers. A retailer is offered $100,000 at a 1.30 factor, weekly remittances over thirty-nine weeks, with a 3% origination fee deducted at disbursement.
Basis: $100,000 face, 1.30 factor, $3,000 fee deducted, 39 level weekly payments. The APR is the nominal rate under 12 C.F.R. §1026.22 — the unit-period rate that discounts the payment stream to the amount financed, multiplied by the unit-periods in a year — solved by bisection. Illustrative arithmetic, not a quote or an offer.
In New York the offer shows the estimated APR of 80.6% alongside the dollars, calculated under §1026.22 on the estimated term and the projected payments, and labelled an estimate because the true term of sales-based financing depends on sales.[5]
In California the same offer shows the amount of funding the business will receive, the annual percentage rate, the payment, the term and the prepayment details, and the recipient signs the disclosure before the deal is consummated.[10][11] Since SB 362 the provider may not describe the price as an "X% factor rate" in a way that diverges materially from the APR, and must state the APR whenever it states any charge or pricing metric after the offer.[13]
In Utah the box has no rate on it at all: $100,000 provided, $97,000 disbursed, $130,000 to be paid, and the total dollar cost.[14] Georgia, Missouri and Louisiana open the same way, and Missouri labels the Total Dollar Cost of Financing explicitly.[31][33][36] Kansas requires the terms at consummation without, in what was read, a rate.[30] The reader who wants the 80.6% has to compute it, which is exactly what the APR-versus-factor-rate arithmetic exists to give them.
In Virginia the form adds two lines the others lack: the fees, penalties and other amounts outside the finance charge, and whether the provider is paying a broker and how much.[20] On a deal that came through an intermediary, that second line is often the first time the business learns what the introduction cost.
In the thirty-nine other states the offer shows whatever the provider chooses to show. Ask for the lines in the table above regardless; a provider who will not put them in writing has answered a different question than the one you asked.
A term loan has a term. A merchant cash advance has an estimate, and the statutes that require a rate on one had to decide what to do about that.
The instrument is a purchase of a fixed dollar amount of future receivables, which is why the payment can move with sales rather than sit as a fixed instalment. Virginia's definition names the mechanism directly: a fixed payment with a reconciliation that adjusts it to a percentage of sales or revenue.[17] If sales fall, the remittance falls or the term extends; either way the payback arrives over more weeks than projected, and a rate that was 80.6% on a thirty-nine-week estimate is lower on the fifty-two weeks it actually took. The disclosed figure is an estimate by construction.
New York handles the estimate two ways. The APR is disclosed as estimated, calculated on projected sales by either the historical method or the opt-in method,[5] and a provider that elects the opt-in method must file, by April 30 each year beginning in 2025, a report of the estimated APRs it disclosed and the actual retrospective APRs on completed transactions.[8] That report is the accountability: a provider whose estimates run systematically low leaves a paper trail with the regulator. California's answer is the no-liability provision in SB 33 — nothing in the division imposes liability because the actual APR differed from an estimated APR disclosed in conformity with the commissioner's rules[12] — paired with SB 362's rule that "interest" and "rate" may not be used deceptively.[13] Louisiana went another way entirely, separating the amounts charged in a revenue-based financing transaction from interest and requiring a written disclosure of the terms rather than a rate.[34]
What this means for the business reading the form: an estimated APR is honest only if the estimated term is. Ask what sales assumption produced it. If the remittance was sized against your best quarter, the term is short and the real cost of a slow season is a longer term at the same dollar cost — the fixed-fee arithmetic covered in how merchant cash advances actually work.
We fund businesses in all fifty states, and eleven of them tell us what the first page must say. Our position is that the first page should say the same thing in Wyoming as in New York, so what follows is only what this site already publishes.
The financing cost — the factor rate or interest built into the payback amount — is stated in the agreement as a total dollar figure before signing. Where an agreement includes an origination fee, it is taken from the funded amount and disclosed in the agreement, in writing, before commitment. There is no application fee, no fee to receive a quote and no charge for checking eligibility, and a good agreement rewards early payoff rather than punishing it; the full account is on how we make money.
Every offer also carries a SMART Box disclosure — Straightforward Metrics Around Rate and Total cost — which shows the APR, the total cost of financing, the cost in cents on the dollar, the average monthly payment, the total repayment amount, the payment frequency, the origination fee and the maturity date. Its APR is computed the way Regulation Z computes one: the periodic rate that discounts the level payment stream back to the net proceeds after fees, multiplied by the number of periods in a year. On the worked example above that is 80.6% — the same figure New York's form would carry. The loan comparison tool sets those boxes side by side for any offers a visitor enters, so two funders' first pages can be read in one format before either is signed.
Two commitments sit outside every disclosure statute and matter as much as the numbers. We file no UCC-1 lien against the funded business, and our agreements contain no confession of judgment. Neither is a disclosure item anywhere except Virginia's collateral line, and both change what happens if a deal goes wrong more than the rate does; the merchant cash advance agreement, clause by clause explains why.
Our published range is $5,000 to $10,000,000 on terms from four months to three years, with a cost of capital of 4.5% to 45% depending on qualifications and term length. The products these statutes reach are the ones we offer — an advance collected against receipts, revenue-based financing with a remittance sized to revenue, and working capital loans on a fixed schedule — and in every one of them the number to compare first is the net funded amount against the total payback in dollars, then the APR between offers of the same term.
Four limits are worth stating plainly, because a business that believes a disclosure law protects it from something it does not is worse off than one that never heard of it.
They do not cap the price. Not one of the eleven sets a maximum factor, fee or rate. A price ceiling is a feature of guaranteed lending rather than of disclosure law: the SBA sets a maximum spread over the base rate for each 7(a) loan size band, and the 7(a) rate caps at the current prime rate work out what those ceilings come to today. New York's statute regulates the format of the disclosure and the penalty for omitting it, not the number disclosed.[5][6] Florida goes further in the other direction: the provider's characterisation of an accounts receivable purchase transaction as a purchase is conclusive that it is not a loan or a transaction for the use, forbearance or detention of money,[22] which is the usury question answered in the definitions section.
They stop at the threshold. A $600,000 advance in Florida or Virginia, a $300,000 one in Connecticut, a $1,200,000 one in Utah or Texas and a $3,000,000 one in New York fall outside the statute entirely.[23][18][28][16][35][4] A company offered $1,500,000 gets no form in any state except New York.
They do not underwrite. A disclosure tells you what the money costs. It does not tell you whether the business can carry the remittance through its weakest week, and no statute makes the provider size the payment to the slow month rather than the average one. That test is the applicant's, and the stacking arithmetic shows what happens when it is skipped: the second and third positions are disclosed just as accurately as the first.
They exempt the occasional provider. New York, Utah, Virginia and Kansas do not reach a party entering five or fewer transactions in twelve months, and in Florida and Missouri someone at or below five is not a "provider" at all.[4][16][18][30][22][31] A supplier that extends terms twice a year, or an individual investor advancing against receivables, owes no form.
A disclosure statute is the right tool for one job: reading the first page of an offer accurately. It is the wrong tool for these.
Eleven states require a commercial financing disclosure as of September 2026, in two families: the dollar family — Utah, Georgia, Florida, Missouri, Louisiana — that prints what was provided, disbursed and owed, and the rate family — New York and California — that adds an annual percentage rate computed by the Regulation Z method the federal Truth in Lending Act does not itself apply to business credit. Thresholds run from $250,000 to $2,500,000 per transaction, six of the eleven exempt anyone doing five or fewer deals a year, and Virginia, Connecticut, Texas and Louisiana reach sales-based or revenue-based financing and nothing else.
On a $100,000 advance at a 1.30 factor with a $3,000 fee over thirty-nine weeks, the dollar family says $33,000 and the rate family says 80.6%, and both are right. Use the dollars to decide whether the money is worth taking and the rate to decide between offers of the same term. In any state, ask for the total provided, the amount disbursed, the total of payments, the payment amount and frequency, and the early-payoff amount in writing — and if you want to see all of them on one page before deciding anything, call 518-312-0382 or check what you would qualify for, which takes about a minute and uses a soft credit pull only.
The frame is the fifty states plus the federal baseline, last verified in September 2026. For each state the search was for a statute, enacted bill or regulator page on that state’s official legislature, code or agency host requiring a disclosure on commercial financing, and within it for the threshold, the trigger, the required items, the effective date, the regulator and the penalty. A cell was filled only where an official extract supported the specific figure entered; the verification notes record, source by source, what each extract showed. Ten states — New York, California, Utah, Virginia, Florida, Connecticut, Kansas, Missouri, Louisiana and Texas — met that bar with operative detail. Georgia’s bill, as passed and listed as signed, was read for its five disclosure items, its broker limits and its enforcement but not for its threshold, effective date or code section, so those Georgia cells read "not confirmed". Maryland and Illinois are recorded as bills whose enactment was not confirmed. The remaining thirty-seven states are recorded as "no statute located", which is a statement about this survey rather than a finding that none exists.
Within the confirmed rows, "not read in this survey" marks an item the official extract did not carry — Utah’s, Connecticut’s and Virginia’s penalties, Kansas’s item list and effective date, Virginia’s effective date, Missouri’s and Louisiana’s dollar thresholds, Texas’s Finance Code chapter, and the compliance date of New York’s regulation among them — and no figure was borrowed from a vendor summary, a law-firm page or memory to fill it. The two-family reading, dollar-cost statutes against rate statutes, is this article’s own classification of the confirmed texts and not a term any statute uses.
The figure and the worked table are derived, not surveyed: a $100,000 advance at a 1.30 factor with a 3% origination fee deducted, repaid in level weekly payments over 17, 26, 39, 52 and 78 weeks. The simple annualised cost is the finance charge over funds disbursed, scaled to 52 weeks; the estimated APR is the nominal rate under 12 C.F.R. §1026.22 — the weekly rate that discounts the payment stream to the funds disbursed, multiplied by 52 — solved by bisection.[2] The SMART Box calculator on this site computes its APR the same way, and the site’s arithmetic audit recomputes every published value here from those inputs. There is no public dataset of disclosures actually delivered under any of these statutes, and none is claimed.
Eleven as of September 2026: New York, California, Utah, Virginia, Florida, Georgia, Connecticut, Kansas, Missouri, Louisiana and Texas. Maryland and Illinois have bills whose enactment this survey could not confirm. No statute was located in the remaining thirty-seven states, so an offer there shows whatever the provider chooses to show.
Only in New York and California. New York requires an estimated APR calculated under 12 C.F.R. §1026.22 on an estimated term; California requires an annual percentage rate under its regulator’s rules. Utah, Georgia, Florida, Missouri and Louisiana require dollar figures with no rate: funds provided, funds disbursed, total to be paid and the total dollar cost. Kansas requires the terms disclosed at consummation; its item list was not read in this survey.
No. The Act exempts credit extended primarily for business, commercial or agricultural purposes, so no federal disclosure form applies to a business advance. New York borrows the Act’s rate method by citing Regulation Z, but the duty to disclose is state law, and thirty-nine states impose none.
$2,500,000. An individual commercial financing transaction over that amount is exempt, as are transactions secured by real property, UCC leases, and a provider making five or fewer transactions in a year. Below the threshold, a specific offer of sales-based financing carries an estimated APR, and the civil penalty is up to $2,000 per violation or $10,000 where wilful.
Yes. House Bill 700 of the 89th Legislature requires a provider extending a specific offer of commercial sales-based financing of less than $1,000,000 to a Texas recipient to disclose prescribed information, and requires brokers to register with the Office of Consumer Credit Commissioner before taking compensation. Banks and credit unions and their affiliates are exempt.
Five numbers in writing: the total amount provided, the amount disbursed after fees, the total of payments, the payment amount and frequency, and the early-payoff amount at a stated date. From those, the total dollar cost and the APR are arithmetic anyone can check. A provider who will not put them in writing has answered a different question.
Travis Yule founded Full Send Funding in 2021 and leads it from Middle Grove, New York. He writes about working capital from the underwriting side of the table — what the numbers actually have to say before a business gets funded.