Texas registration is due Dec 31, plus one wording check for California.
This is a sample of the format. Issue 01 has not been sent yet, and the items below are summarized from the sources linked at the bottom, not legal advice.
Two state items and one to watch.
Registration due by December 31, 2026
Texas HB 700 covers sales-based financing, also called merchant cash advance. Providers and brokers must register with the Office of Consumer Credit Commissioner by December 31, 2026 and renew every year. Written disclosure requirements are already in force. Unlike Connecticut and Virginia there is no exemption for low-volume providers, and the commissioner can seek civil penalties of up to $10,000 per violation.
- Are you registered or scheduled to be?
- Do your Texas disclosures show total amount financed, finance charge, total repayment and all fees?
APR and wording rules under SB 362
SB 362 amends California's commercial financing disclosure law. Pricing has to be expressed as an APR, the APR has to be disclosed whenever a charge or financing amount is stated, and words like "interest" and "rate" are restricted where they could mislead. Annual reporting for the prior year is due March 15.
- Check sales scripts, emails and web copy, not only the contract.
- Confirm the effective date with counsel. Sources differ, and one major law firm summary does not state it.
New Jersey SB 1760
A New Jersey bill would cover sales-based financing, closed-end, open-end and factoring transactions, with civil penalties of up to $10,000 for willful violations. It is pending, and we have not confirmed that it has been enacted. We will report if it moves.
The contract is rarely where the gap is.
State disclosure laws are written about the document, but they apply to how financing is described to a prospective customer. Disclosure templates are usually reviewed with counsel. The email a sales rep sends, the web page and the call script usually are not. When a state restricts words such as "rate" or requires an APR whenever a price is mentioned, those are the places to read first.
A state disclosure check you can run this week.
For each state you lend in:
- Which of our products does the state's law cover, and does an exemption apply to us?
- What must the disclosure contain, and when must it be given?
- Do we have to express pricing as an APR, and where?
- Are there words we are not allowed to use, and have sales and marketing checked?
- Do we or our brokers have to register, and what is the renewal date?
- Is there an annual report, and is the date in a shared calendar?
- Who owns each state, and when was it last reviewed?
Sources: Venable, State Commercial Financing Disclosure Laws, March 2026; Alston and Bird, Commercial Financing Disclosure Requirements and Exemptions. Dates and details are summarized and should be checked against the statutes and with your own counsel. NextRaise is not a law firm.