MCA leads in Texas.

Disclosure law

House Bill 700, commercial sales-based financing

In force

1 September 2025

Threshold

Transactions above $1 million are exempt

Must contain

Total amount financed, the finance charge, total repayment amount, every potential fee, and the repayment terms.

Annualised rate

The statute is built around total dollar cost and the schedule rather than an annualised figure. Confirm against the statute before assuming an APR line is or is not required.

Registration

Providers and brokers of sales-based financing must register. The deadline is 31 December 2026. Unlike most of the older regimes this one was written with brokers named in it from the start rather than added later.

Calling

Texas has a telephone solicitation registration regime with exemptions, and no FTSA-style private right of action for autodialled B2B calls. The federal TCPA is the operative constraint.

sources disagree on some effective dates, so confirm against the statute

1. 1If you broker into Texas and have not registered, the deadline is 31 December 2026 and it applies to brokers by name.
2. 2Texas is where the newly-regulated cohort sits. Merchants here have had disclosure for less than a year and many have taken advances under both regimes, so the paperwork on a repeat merchant may not match.
3. 3HB 700 is scoped to sales-based financing specifically, which is narrower than California’s all-commercial-financing approach. A term loan and an advance are not treated identically here.