The short answer

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.

Checked 30 August 2026. This is a summary of what the rules are, not legal advice on what to do about them — and secondary sources disagree on several of these effective dates, usually because a statute’s own effective date and the date compliance is actually required are different. Confirm against the statute.

The disclosure requirement

Statute

An Act Requiring Certain Financing Disclosures

In force

Enacted 28 June 2023, with disclosure requirements from 1 July 2024 and registration from 1 October 2024.

Reaches

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

Must contain

Total amount financed, finance charge, total repayment, payment frequency and amount, prepayment terms, and specific language on the right to prepay.

Annualised rate

Not an annualised-rate regime. The disclosure is built on total cost, payment frequency and prepayment.

Registration and licensing

Annual registration with the Connecticut Department of Banking for both providers and brokers, from 1 October 2024.

Calling into Connecticut

Federal TCPA plus Connecticut’s telemarketing provisions. No FTSA-style private right of action.

What changes for a broker

• At $250,000 the ceiling is low enough that essentially every advance is covered. There is no practical carve-out.
• The prepayment language requirement is specific to Connecticut and is the provision most often missed by providers using a generic multi-state template.
• Broker registration is annual and is enforced by the Department of Banking rather than an Attorney General, which in practice means administrative rather than litigated consequences — but it still lapses.

What Connecticut files look like

Small and concentrated in professional services, healthcare practices, restaurants and specialty retail. Deal sizes are moderate and the merchant base is comparatively sophisticated, with strong proximity to the New York funding market.

Questions