MCA regulations
A growing list of states makes funders put the cost of an advance on paper before you sign. Here is where those laws stand as of October 2026 and how to read the disclosure you get.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
There is no single federal law written for merchant cash advances. Instead, a set of states have passed commercial financing disclosure laws. They require the provider to hand the business a standard disclosure before the deal closes, showing what you receive, what you pay back, how payments are taken and what prepayment does. A few of these states also require providers or brokers to register with a state agency.
These laws do not cap prices and they do not make an advance a loan. What they do is give you the same set of numbers on every offer, which makes comparison far easier. Status below is as of October 2026.
| State | Law and timing | What it requires |
|---|---|---|
| New York | Commercial Finance Disclosure Law; regulations effective August 1, 2023 | Disclosure of funding provided, finance charge, estimated APR, payment amounts and prepayment terms |
| California | SB 1235 disclosure law; regulations effective December 9, 2022. SB 362 added limits on using "rate" and "interest" wording, effective January 1, 2026 | Disclosure including an estimated APR on covered offers |
| Utah | Commercial Financing Registration and Disclosure Act; effective January 1, 2023, with revisions effective May 1, 2024 | Registration of providers plus a cost disclosure |
| Virginia | HB 1027; effective July 1, 2022 | Registration of sales-based financing providers and brokers, plus disclosures |
| Florida | Florida Commercial Financing Disclosure Law (HB 1353); applies to transactions from January 1, 2024 | Disclosure of total amount, total cost, payment manner and prepayment |
| Georgia | Commercial financing disclosure law; effective January 1, 2024 | Disclosure of amount, cost, payments and prepayment |
| Connecticut | Commercial financing disclosure and registration law; disclosures from July 1, 2024, registration by October 1, 2024 | Disclosures plus registration with the Department of Banking |
| Kansas | Commercial financing disclosure law; effective July 1, 2024 | Disclosure of amount, cost, payments and prepayment |
| Missouri | SB 1359 (Section 427.300); signed 2024, disclosures from February 28, 2025 unless rulemaking set a later date | Provider disclosures and broker registration |
| Texas | HB 700 (Finance Code Chapter 398); effective September 1, 2025, registration with the Office of Consumer Credit Commissioner by December 31, 2026 | Disclosures and registration for commercial sales-based financing providers and brokers |
This table is a plain-language summary for business owners, not legal advice. Laws change and some include exemptions for banks, larger deals or small volumes. Check the current statute or ask your attorney before relying on any line.
New York and California also ask for an estimated annual percentage rate on covered offers. That figure is an estimate because an advance has no fixed term; it is still useful for ranking offers against each other.
| Line on the disclosure | Offer A | Offer B |
|---|---|---|
| Funds provided | $50,000 | $50,000 |
| Fees deducted | $1,500 | $0 |
| Disbursed to you | $48,500 | $50,000 |
| Total repayment | $65,000 | $67,500 |
| Total cost | $16,500 | $17,500 |
| Payment | $500 per business day | $1,125 per week |
| Prepayment | Discount if paid in 60 days | No change |
Offer A costs $1,000 less but its daily debit is heavier on a slow week. Offer B lands more cash and pulls weekly. Put the two side by side against your own deposit pattern before you pick, and read MCA cost for the full method.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
You can still ask for every one of these numbers in writing, and you should. Any offer you get through Merchant Fund Express shows the amount, the schedule and the full repayment before you sign, whatever state you are in. Pair it with the contract terms to read and the checklist before signing.
If you want to see real numbers on your own file, check what you qualify for without affecting your credit, or apply in about five minutes.
Yes, increasingly at the state level. Several states require standard cost disclosures and some require providers or brokers to register. The advance itself is generally treated as a purchase of future receivables rather than a loan.
No. The disclosure laws covered here require clear numbers before signing; they do not set a maximum price.
Among the states listed, Utah, Virginia, Connecticut, Missouri (for brokers) and Texas include registration requirements. Check the agency in your state for current status.
No. For an advance it is an estimate built on assumed sales, so treat it as a comparison tool, not a promise.
No. It is a summary for owners as of October 2026. Ask your attorney before relying on it.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
