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Reference

MCA regulation by state

Ten states now require a standardised disclosure before a merchant signs a commercial financing agreement, and a growing number register the brokers who arrange them. A separate set of states regulates the phone call rather than the paperwork, sometimes far more aggressively. These are the fourteen where the rules genuinely change what a broker does — the other thirty-six have nothing state-specific to say.

14 states with rules that change what you do. Checked 30 August 2026.

Most published state-by-state guides for this industry are wrong in the same two ways: they list New Jersey as a disclosure state, which it is not, and they cover the financing statutes while ignoring the telephone solicitation acts, which are the ones most likely to cost a broker money. This page does neither.

Nothing here is legal advice. It is a map of which rules exist and roughly what they reach, which is enough to ask a lawyer the right question rather than an open one.

The 10 disclosure states

Each requires a standardised written disclosure before a merchant signs. Only California and New York mandate an annualised rate; the rest are built around total dollar cost and the payment schedule.

California

Transactions of $500,000 or lessRegisters brokers

California requires an estimated APR on commercial financing offers of $500,000 or less, and its financing-broker licensing regime is the broadest in the country.

New York

Transactions of $2,500,000 or less — by far the highest ceiling of any stateRegisters brokers

New York requires an estimated APR on commercial financing up to $2.5 million, bars confessions of judgment against out-of-state merchants, and is where nearly every merchant cash advance recharacterisation case is decided.

Texas

Transactions above $1 million are exemptRegisters brokers

Texas began regulating sales-based financing on 1 September 2025 under HB 700, and both providers and brokers must register by 31 December 2026.

Florida

Transactions of $500,000 or less

Florida requires commercial financing disclosures on transactions of $500,000 or less and separately runs one of the harshest telephone solicitation statutes in the country.

Virginia

Transactions above $500,000 are exemptRegisters brokers

Virginia was the first state to require sales-based financing brokers — not just providers — to register, with registration open since 1 November 2022.

Utah

Transactions above $1 million are exemptRegisters brokers

Utah requires commercial financing providers to register annually with the Department of Financial Institutions and to disclose total cost and payment terms, but not an annualised rate.

Connecticut

Sales-based financing of $250,000 or less — the lowest ceiling of the ten statesRegisters brokers

Connecticut requires disclosures on sales-based financing of $250,000 or less — the lowest threshold in the country — and annual registration of both providers and brokers.

Georgia

Transactions of $500,000 or less

Georgia requires commercial financing disclosures from 1 January 2024 on transactions of $500,000 or less, and is the state that most clearly declines to require an APR.

Kansas

Commercial financing transactions of $500,000 or less

Kansas has required commercial financing disclosures on transactions of $500,000 or less since 1 July 2024.

Missouri

Transactions above $500,000 are exemptRegisters brokers

Missouri requires commercial financing brokers to register with the Division of Finance and post a $10,000 surety bond, in addition to the standard disclosure.

States that regulate the call instead

No financing statute, and in three cases a materially higher risk of being sued than in any of the ten above. These are the states where how your dialler is configured matters more than how your disclosure is worded.

8 states register brokers or providers

California, New York, Texas, Virginia, Utah, Connecticut, Missouri, New Jersey. Virginia was first, in November 2022. Missouri is the only one that also requires a surety bond, and Texas has the only deadline still ahead of you — 31 December 2026.

The other 36 states

They have no commercial financing disclosure law, no broker registration and no telephone solicitation act that reaches further than the federal TCPA. A page for each would be a page with nothing on it, so there isn’t one. What applies there is the federal baseline, which is covered in the compliance guide.

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