The short answer

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

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

House Bill 700, commercial sales-based financing

In force

1 September 2025

Reaches

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 and licensing

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 into Texas

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.

What changes for a broker

• If you broker into Texas and have not registered, the deadline is 31 December 2026 and it applies to brokers by name.
• Texas 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.
• HB 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.

What Texas files look like

The highest-volume state after California and the most distinctive in mix. Trucking and freight are heavily over-represented, oilfield and energy services produce large and violently cyclical files, and construction runs hot across Dallas, Houston and Austin. Business formation rates are among the highest in the country, which means more merchants clearing six months in business every quarter than almost anywhere else.

Questions