On this page
| Disclosure law | Yes |
|---|---|
| Broker registration | Yes |
| State calling statute | Federal only |
The most consequential state in this industry and not because of its merchants. Most funding paper is New York-governed wherever the merchant sits, most funders are domiciled here, and the case law that decides whether an advance is a purchase or a loan is New York case law.
The disclosure requirement
| Statute | Commercial Finance Disclosure Law, with Department of Financial Services regulations |
|---|---|
| In force | The statute took effect in 2023; DFS’s final regulations set the compliance date at 1 August 2024. Sources cite both years, which is why. |
| Reaches | Transactions of $2,500,000 or less — by far the highest ceiling of any state |
| Must contain | Amount financed, finance charge, annual percentage rate, total repayment, term, payment amounts, prepayment terms and a description of collateral. |
| Annualised rate | Required, and the DFS methodology for calculating it on sales-based financing is prescribed rather than left to the provider. |
Registration and licensing
No separate commercial financing registry, which understates the position considerably. New York’s Attorney General has brought the largest enforcement actions in the sector, including a judgment exceeding $77 million against Richmond Capital Group and affiliated funders for usury and fraud.
Calling into New York
Federal TCPA plus New York’s own do-not-call provisions. No FTSA-style private right of action for autodialled business calls.
What changes for a broker
- The $2.5 million ceiling means essentially every advance you will ever broker into New York is covered. There is no small-deal carve-out worth relying on.
- The 2019 confession of judgment law bars a COJ against a debtor outside New York in transactions of $250,000 or less. Paper still circulates with COJ clauses that would not be enforceable as drafted.
- New York courts apply a three-factor test to decide whether an advance is really a loan: is there a meaningful reconciliation provision, is the term genuinely indefinite, and does the funder actually bear the risk of the merchant failing.
- Courts now look past the contract to conduct. A reconciliation clause the funder never honours is evidence against the funder, not protection for it — which makes reconciliation a question worth asking a funder before you place files with them.
What New York files look like
Dense and transaction-heavy. Restaurants, retail, construction and professional services dominate by count. Deal sizes skew larger than the national picture, partly because operating costs are higher and partly because New York merchants are the most advance-literate in the country — many are on a third or fourth position and know exactly what they are being offered.
Questions
Does New York regulate merchant cash advances?
Yes. Commercial Finance Disclosure Law, with Department of Financial Services regulations applies to transactions of $2,500,000 or less — by far the highest ceiling of any state. Amount financed, finance charge, annual percentage rate, total repayment, term, payment amounts, prepayment terms and a description of collateral.
Do I need to register to broker MCAs in New York?
No separate commercial financing registry, which understates the position considerably. New York’s Attorney General has brought the largest enforcement actions in the sector, including a judgment exceeding $77 million against Richmond Capital Group and affiliated funders for usury and fraud.
Can I cold call businesses in New York?
Federal TCPA plus New York’s own do-not-call provisions. No FTSA-style private right of action for autodialled business calls.
Whichever state you are dialling, what protects you is the consent record rather than an assurance from a vendor. That is covered in the compliance guide.
Do you sell MCA leads in New York?
Yes. Every lead clears the same six minimums wherever the merchant is — $30K+ monthly revenue, $15K+ requested, six months trading, four months of statements available, U.S.-based, and mobile-verified by a 6-digit code. $60 per lead, in packs starting at 50. We can filter your leads by state, which is a real risk control in New York if you are concerned about the calling rules.