How we make money: The Business Funding Club is a referral service, not a lender and not a broker. We refer businesses that ask for capital to ROK Financial. ROK and the lenders it matches you with make every funding decision. ROK pays us when a business we refer receives funding. It is free to you, and nothing here is an offer of credit. Read the full disclosure.

Illustration of a state capitol at dusk with an open law book in the foreground

Guide

Your right to see the cost: state commercial financing disclosure laws

Federal truth-in-lending rules cover consumer credit, not business credit. A growing number of states now require providers of business financing to put the cost in writing before you sign. This guide lists those laws state by state, each cited to the statute or the regulator, and shows how to use a disclosure to compare offers. It is general information, not legal advice.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.

By Marcus L. Barber, Publisher · Reviewed by Marcus before publishing · Updated · How we write and check facts

Why business financing needed its own disclosure laws

The federal Truth in Lending Act, through Regulation Z, gives consumers standard cost disclosures. Regulation Z exempts credit extended primarily for a business, commercial or agricultural purpose[1]. So for years, two offers made to the same business could describe their cost in completely different terms.

States have filled the gap one at a time. The laws differ in which products they cover, how large a deal can be before the law stops applying, and whether the provider must state an annual percentage rate. Most share a core: before you are bound, the provider gives you a written statement of how much you receive, how much you pay back, how payments work, and what happens if you pay early.

Where you are is what counts

These laws generally turn on where your business is located, not where the provider is. Virginia's law, for example, covers businesses whose principal place of business is in Virginia and applies to internet transactions whether or not the provider has an office in the state[2].

The laws, state by state

Each row below was checked against the statute text or the regulator's page on October 16, 2026. Where a date is set by rulemaking or the sources leave it open, the row says to check the regulator. "Exempt" means the law does not apply above that size.

State commercial financing disclosure laws
StateLaw and citationIn effectSize limitWhat must be disclosedWho enforces
CaliforniaCommercial Financing Disclosures, Cal. Fin. Code §§ 22800 to 22807[3]DFPI regulations effective Dec. 9, 2022[4]Offers of $500,000 or less[3]Total funds provided, total dollar cost, term or estimated term, method, frequency and amount of payments, prepayment policies, and total cost expressed as an annualized rate. You sign the disclosure before closing[5]Department of Financial Protection and Innovation (DFPI)[4]
New YorkCommercial Finance Disclosure Law, N.Y. Fin. Serv. Law Art. 8, §§ 801 to 812; rules at 23 NYCRR Part 600[6,7]Rules adopted Feb. 1, 2023. For the compliance date, check the DFS page[7]$2.5 million or less[7]For sales-based financing: total amount and disbursement amount, finance charge, estimated annual percentage rate, total repayment, estimated term, payment amounts, other fees, prepayment terms, and collateral[8]Superintendent of Financial Services (DFS)[9]
UtahCommercial Financing Registration and Disclosure Act, Utah Code Title 7, Ch. 27[10]Jan. 1, 2023[10]Transactions over $1,000,000 are exempt[11]Total funds provided and disbursed, total amount to be paid, total dollar cost, manner, frequency and amount of payments, and any prepayment costs or discounts[12]Department of Financial Institutions. Providers must register[13,10]
VirginiaSales-Based Financing Providers, Va. Code §§ 6.2-2228 to 6.2-2238[2]Enacted 2022. Providers and brokers had to register by Nov. 1, 2022. For disclosure-form timing, check the SCC[2]Sales-based financing only. A single transaction over $500,000 is exempt[2]Total financing and disbursement amount, finance charge, total repayment, estimated number of payments, payment amounts, other fees, prepayment terms, collateral, and any broker compensation. You sign the disclosure[2]State Corporation Commission (registration and rules). The Attorney General may sue to stop violations[2]
GeorgiaO.C.G.A. § 10-1-393.18, enacted by SB 90 (2023)[14]Jan. 1, 2024[15]Transactions over $500,000 are exempt[14]Total funds provided and disbursed, total amount to be paid, total dollar cost, manner, frequency and amount of payments, and prepayment costs or discounts[14]Attorney General[14]
FloridaFlorida Commercial Financing Disclosure Law, Fla. Stat. §§ 559.961 to 559.9615[16]Transactions on or after Jan. 1, 2024[16]Transactions over $500,000 are exempt[16]Total funds provided and disbursed, total amount to be paid, total dollar cost, manner, frequency and amount of payments, and prepayment costs or discounts[17]Attorney General, exclusively[18]
ConnecticutConn. Gen. Stat. §§ 36a-861 to 36a-872, enacted by Public Act 23-201[19,20]July 1, 2024. Registration due by Oct. 1, 2024[20]Sales-based financing of $250,000 or less[20]Total financing, disbursement amount, finance charge, total repayment, estimated term, payment amounts, other fees, prepayment charges, collateral, and any broker compensation[21]Banking Commissioner, Department of Banking[21]
KansasCommercial Financing Disclosure Act, K.S.A. 75-783 to 75-787[22]July 1, 2024[22]Transactions over $500,000 are exempt[23]Labeled lines: total amount of funds provided, total amount of funds disbursed, total of payments, total dollar cost of financing, payments, and prepayment[22]Attorney General, exclusively[23]
MissouriCommercial Financing Disclosure Law, RSMo § 427.300[24]Set by the statute's rulemaking trigger. Check the Division of Finance[24]Transactions over $500,000 are exempt[24]Labeled lines: Total Amount of Funds Provided, Total Amount of Funds Disbursed, Total of Payments, Total Dollar Cost of Financing, Payments, and Prepayment[24]Attorney General, exclusively. Brokers register with the Division of Finance[24]
LouisianaLa. R.S. 9:3137.10, enacted by Act 198 of 2025 (HB 470)[25]Aug. 1, 2025[26]Revenue-based financing only. The section sets no dollar ceiling[25]Total funds provided and disbursed, total amount to be paid, total dollar cost, manner, frequency and amount of payments, and prepayment costs or discounts[25]The section does not name an enforcing agency. Check with the Louisiana Attorney General[25]
TexasCommercial Sales-Based Financing, Tex. Fin. Code Ch. 398, enacted by HB 700 (2025)[27]Law effective Sept. 1, 2025. OCCC rules effective July 9, 2026. Registration required by Dec. 31, 2026 for providers and brokers already in business on Sept. 1, 2025; others register before doing business[27,28]Sales-based financing offers of less than $1 million[27]Total financing, disbursement amount, finance charge, total repayment, estimated term, payment amounts, other fees, prepayment charges and fees, collateral, and any broker compensation. You sign before the application is finalized[27]Office of Consumer Credit Commissioner (OCCC)[27,29]

Laws change

Legislatures amend these laws, and regulators issue new rules. Before you rely on a row, open the statute or the regulator's page in the Sources list below.

What the laws have in common

  • Timing. The disclosure comes before you are bound. California and New York tie it to the offer[5,8]. Florida, Georgia, Kansas, Missouri and Louisiana require it at or before closing[17,14,22,24,25].
  • Your signature. California, Virginia, Connecticut and Texas require the provider to get your signature on the disclosure[5,2,21,27].
  • Total dollar cost. Most of these laws require a plain dollar figure for the cost: the total you pay back minus the funds provided[14,17].
  • Annual percentage rate. Only some states require one. California requires the total cost expressed as an annualized rate[5], and New York requires an estimated annual percentage rate for sales-based financing[8]. The Georgia, Florida, Kansas and Missouri laws list dollar amounts and payment terms instead[14,17,22,24].
  • Broker pay. Virginia, Connecticut and Texas require a statement of whether the provider pays a broker, and how much[2,21,27]. Georgia, Florida and Kansas bar brokers from charging advance fees[14,30,23].
  • State enforcement. Georgia, Florida, Kansas, Missouri and Texas each say the law does not create a private right of action, which leaves enforcement with the state[14,18,23,24,27].

How to use a disclosure to compare two offers

A disclosure is most useful next to another one. Put two side by side and work through the same steps for each.

  1. Start with what reaches your account. Compare the disbursement amount, not the headline amount. Fees taken at closing and payoffs of earlier balances come out first[17].
  2. Compare the total dollar cost. On most state forms it is the clearest single number.
  3. Line up the payment schedules. Daily, weekly and monthly payments put different pressure on cash flow, even when the totals match.
  4. If both disclosures show an annual percentage rate, compare those too, since it accounts for how long you have the money. If only one shows it, ask the other provider for the same figure.
  5. Read the prepayment line. Find out whether paying early lowers what you owe, or whether the full cost is due either way.
  6. Check collateral and guarantees. Note what property is pledged and who is personally on the hook.
  7. Ask who is being paid to arrange the deal. Some states require this on the form. Anywhere else, you can still ask.

Questions worth asking any provider, in any state:

  • What is the total I will repay, and what is the total dollar cost?
  • How much will actually be deposited after fees and payoffs?
  • How are payments collected, and how often?
  • If my sales drop, does the payment change, and how?
  • What does it cost to pay this off early, and is any of the cost forgiven?
  • What collateral or personal guarantee is required?
  • Will you file a UCC financing statement, and what will it cover?
  • Is anyone being paid to arrange this, and by whom?

Our funding readiness guide covers personal guarantees and UCC filings in more detail.

If a provider won't give you a disclosure

In the states above, a covered provider that will not give a required disclosure is out of step with the law. Anywhere else, a provider that will not put the cost in writing is still telling you something.

  1. Ask in writing. Email a request for the total amount to be repaid, the amount that will be deposited, the payment schedule and the prepayment terms.
  2. Don't sign until you have it. In California the provider must get your signature on the disclosure before closing[5], and in Texas before the application is finalized[27].
  3. Check registration where it applies. Utah, Virginia, Connecticut and Texas require providers to register[13,2,20,27]. Missouri requires brokers to register[24].
  4. Report it to the agency in the table. New York's superintendent can order civil penalties and, for knowing violations, restitution[9]. In Georgia and Florida the Attorney General receives and acts on complaints[14,18].
  5. Talk to a lawyer licensed in your state before you sign anything you don't understand.

The Business Funding Club is a free referral club, not a lender or a broker. Businesses that apply through the Club are referred to ROK Financial. ROK and the lenders it matches you with review every application and make every funding decision. Whatever offer you receive, from anyone, the questions above apply.

Not legal advice

This page summarizes state laws as published on the dates listed in the Sources. Coverage depends on details such as your location, the product and the deal size. Check the statute or the regulator, and talk to a lawyer about your situation.

Common questions

Does federal truth-in-lending law cover business loans?

No. Regulation Z, which carries out the federal Truth in Lending Act, exempts credit extended primarily for a business, commercial or agricultural purpose[1]. That is why the standard cost disclosures you see on a car loan or credit card do not automatically come with business financing. State commercial financing disclosure laws fill part of that gap, but only in the states that passed them, and only for the products and deal sizes they cover.

What does California's commercial financing disclosure law require?

California's law, Financial Code sections 22800 to 22807, covers commercial financing offers of $500,000 or less[3]. With the offer, the provider must disclose total funds provided, total dollar cost, term, payment method, frequency and amount, prepayment policies, and total cost as an annualized rate, and must get your signature before closing[5]. DFPI's regulations took effect December 9, 2022[4].

Which states require an annual percentage rate on business financing?

Of the states on this page, California requires the total cost expressed as an annualized rate[5], and New York requires an estimated annual percentage rate for sales-based financing[8]. Georgia, Florida, Kansas, Missouri and Louisiana require dollar amounts and payment terms instead[14,17,22,24,25]. For other products and states, check the statute itself.

My state isn't on this list. What can I do?

Ask for the same information in writing anyway: total repaid, amount deposited, payment schedule, prepayment terms, collateral and any broker pay. A provider that wants your business should be able to answer. This page covers states with dedicated commercial financing disclosure laws that we confirmed against statute text or regulator pages on October 16, 2026. Other states may act, so check your legislature or banking regulator.

Does the law apply if the provider is based in another state?

Usually what matters is where your business is. Virginia's law covers businesses whose principal place of business is in Virginia, and it applies to internet transactions whether or not the provider has a physical presence there[2]. Each state defines its own reach, so read the definitions section of the statute for your state, or ask the regulator listed in the table.

What is total dollar cost?

In states such as Georgia and Florida, total dollar cost is the difference between the funds provided and the total amount you will pay back[14,17]. It is a plain dollar number, which makes it the easiest single line to compare across offers. It does not show how long you have the money, so read it next to the payment schedule and the prepayment terms.

Sources

  1. Regulation Z, 12 CFR 1026.3: Exempt transactions Consumer Financial Protection Bureau, checked October 16, 2026
  2. Code of Virginia Title 6.2, Chapter 22.1: Sales-Based Financing Providers Virginia Legislative Information System, checked October 16, 2026
  3. California Financial Code section 22800 (Division 9.5, Commercial Financing Disclosures) California Legislative Information, checked October 16, 2026
  4. DFPI's commercial financing disclosure regulations approved to become effective as of December 9, 2022 California Department of Financial Protection and Innovation, checked October 16, 2026
  5. California Financial Code section 22802 California Legislative Information, checked October 16, 2026
  6. New York Financial Services Law, Article 8: Commercial Financing New York State Senate, checked October 16, 2026
  7. Superintendent Adrienne A. Harris adopts updated regulation for disclosure requirements for commercial financing New York State Department of Financial Services, checked October 16, 2026
  8. New York Financial Services Law section 803: Sales-based financing disclosure requirements New York State Senate, checked October 16, 2026
  9. New York Financial Services Law section 812: Penalties New York State Senate, checked October 16, 2026
  10. Commercial Financing Utah Department of Financial Institutions, checked October 16, 2026
  11. Utah Code § 7-27-102 (scope and exemptions) Utah State Legislature, checked October 16, 2026
  12. Utah Code section 7-27-202: Disclosure requirements Utah State Legislature, checked October 16, 2026
  13. Utah Code Title 7, Chapter 27: Commercial Financing Registration and Disclosure Act Utah State Legislature, checked October 16, 2026
  14. Senate Bill 90 (2023), as passed and signed Office of the Governor of Georgia, checked October 16, 2026
  15. SB 90 status history Georgia General Assembly, checked October 16, 2026
  16. Florida Statutes section 559.9612: Scope of this part The Florida Senate, checked October 16, 2026
  17. Florida Statutes section 559.9613: Disclosures The Florida Senate, checked October 16, 2026
  18. Florida Statutes section 559.9615: Enforcement The Florida Senate, checked October 16, 2026
  19. Commercial Financing Provider or Broker Registration Information Connecticut Department of Banking, checked October 16, 2026
  20. Public Act 23-201: An Act Requiring Certain Financing Disclosures Connecticut General Assembly, checked October 16, 2026
  21. Public Act Summary, PA 23-201 Connecticut Office of Legislative Research, checked October 16, 2026
  22. K.S.A. 75-784: Commercial financing transactions; required disclosures Kansas Legislature, checked October 16, 2026
  23. Senate Bill 345 (2024), enrolled: Commercial Financing Disclosure Act Kansas Legislature, checked October 16, 2026
  24. RSMo section 427.300: Commercial Financing Disclosure Law Missouri Revisor of Statutes, checked October 16, 2026
  25. La. R.S. 9:3137.10: Revenue-based financing transaction Louisiana State Legislature, checked October 16, 2026
  26. HB 470 (2025 Regular Session) history Louisiana State Legislature, checked October 16, 2026
  27. HB 700 (89th Legislature), enrolled version Texas Legislature Online, checked October 16, 2026
  28. Recent and Upcoming Rules Texas Office of Consumer Credit Commissioner, checked October 16, 2026
  29. Commercial Sales Based Finance Texas Office of Consumer Credit Commissioner, checked October 16, 2026
  30. Florida Statutes section 559.9614: Prohibited acts The Florida Senate, checked October 16, 2026
Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.