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.
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?
- Virginia prohibits confession-of-judgment provisions in sales-based financing and requires actions to be brought in Virginia (Va. Code § 6.2-2234).
- Texas makes a confession-of-judgment provision void, and bars an automatic debit mechanism unless the provider holds a perfected first-priority security interest (Tex. Fin. Code §§ 398.055, 398.056).
- Vermont voids confessions of judgment and restricts automatic debits from July 1, 2027 (8 V.S.A. § 2247).
- 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).
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?
Maryland and Illinois considered bills that did not pass. New Jersey has S1760 (2026-2027 session) pending. No disclosure law 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.
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 | N.Y. Fin. Serv. Law §§ 801-812; 23 NYCRR Part 600sales-based financing (FSL § 801(j)) | Jan 2022 | Exempt: individual transaction over $2,500,000 (§ 802(g)); ≤5 transactions/12 months (§ 802(f)) | Yes | No | CPLR 3218 (Ch. 214 of 2019, eff. 2019-08-30): confession of judgment may be filed only in county where defendant resided at execution or filing |
| California | Cal. 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 | Dec 2022 | 'Recipient' = offer ≤ $500,000 (§ 22800(n)) | Yes | No | None |
| Utah | Utah Code §§ 7-27-101 to 7-27-301accounts receivable purchase transaction | Jan 2023 | Exempt: transaction of more than $1,000,000 (§ 7-27-102(11)); provider with ≤5 transactions/12 months | No | Yes | None |
| Virginia | Va. Code §§ 6.2-2228 to 6.2-2238; 10VAC5-240sales-based financing (incl. true-up) | Jul 2022 | Exempt: single transaction over $500,000; ≤5 transactions with a recipient in 12 months (§ 6.2-2229) | No | Yes | Confession-of-judgment provisions prohibited (§ 6.2-2234(C)); Actions must be brought in Virginia; no out-of-jurisdiction face-to-face arbitration; provider pays arbitration costs (§ 6.2-2234(A)-(B)); Noncompliant provisions unenforceable (§ 6.2-2236) |
| Georgia | O.C.G.A. § 10-1-393.18accounts receivable purchase transaction | Jan 2024 | Exempt: transaction of more than $500,000; provider with ≤5 transactions/12 months | No | No | A/R purchase characterized as purchase is conclusive it is not a loan under Title 7 |
| Florida | Fla. Stat. §§ 559.961-559.9615accounts receivable purchase transaction | Jan 2024 | Exempt: transaction of more than $500,000; ≤5 transactions/12 months | No | No | None |
| Connecticut | Conn. Gen. Stat. §§ 36a-861 to 36a-872sales-based financing (incl. true-up) | Jul 2024 | 'Commercial financing' = sales-based financing not exceeding $250,000 (§ 36a-861(1)) | No | Yes | No waiver of notice/hearing for prejudgment remedies (§ 36a-868); Specific offer irrevocable until midnight of 3rd calendar day (§ 36a-869) |
| Kansas | 2024 Kan. Sess. Laws ch. 29accounts receivable purchase transaction (includes cash receipts) | Not confirmed | Exempt: transaction of more than $500,000; ≤5 transactions/12 months | No | No | None |
| Missouri | RSMo § 427.300accounts receivable purchase transaction | Feb 2025 | Exempt: transaction of more than $500,000; ≤5 transactions/12 months | No | No | None |
| Texas | Tex. Fin. Code ch. 398; 7 TAC §§ 86.301-86.322commercial sales-based financing (incl. true-up) | Sep 2025 | Disclosures for specific offers of less than $1 million (§ 398.051(a)) | No | Yes | Confession of judgment provision void (§ 398.055); No automatic debit mechanism unless perfected first-priority security interest (§ 398.056; 7 TAC 86.313: in all accounts receivable; >1 prewritten check counts) |
| Louisiana | La. R.S. 9:3137.10revenue-based financing transaction | Aug 2025 | No threshold or exemptions in enacted text | No | No | Revenue-based financing is not a transaction for the use, forbearance, or detention of money; amounts charged are not interest (§ 3137.10(A)(2), (B)) |
| Vermont | 8 V.S.A. § 2247sales-based financing (incl. sale/assignment of future receivables) and factoring | From Jul 2027 | Section does not apply to transactions of $1,000,000 or more (§ 2247(b)(4)) | Yes | Yes | Confession of judgment void (§ 2247(e)); Automatic debit restriction (§ 2247(d)); Vermont law/venue required (§ 2247(f)) |
Open questions the research could not confirm
- New York: Enacting bill and effective date of GBL § 349 'abusive' amendment (reported FAIR Business Practices Act, eff. 2026-02-17).
- California: 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).
- Utah: 2022 bill number; Whether later amendments added broker duties.
- Georgia: Governor signature date (reported 2023-05-01).
- Florida: Bill number (reported HB 1353).
- Connecticut: NMLS registration mechanics (DOB page not opened).
- Kansas: Exact effective date; K.S.A. codification.
- Missouri: Whether Division of Finance declared rulemaking intent; Content of 2025 amendment.
- Texas: Governor signature date (reported 2025-06-20); Renewal deadline: statute Jan 31 vs OCCC Nov 1-Dec 31 window.
- Louisiana: Exact signature date (June 2025).
- New Jersey: 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 them in sales-based financing and Texas makes them void; Vermont's law does the same from 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. Whether a clause in your contract is enforceable is a question for a lawyer licensed in the state.
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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