State Disclosures
A growing number of states require specified disclosures on commercial financing offers, and several impose registration duties on providers or brokers. This page explains what those rules mean for you as a business owner, and what to expect when an offer is presented to you.
What these laws do
Commercial financing has historically been disclosed far less thoroughly than consumer lending. A business could be quoted a factor rate with no annualised figure, making two offers genuinely hard to compare.
Several states have changed that. Their laws differ in detail, but they generally require a provider — and sometimes the broker — to give you standardised information before you sign, which may include:
- The total amount of funds provided, and the amount actually disbursed after fees
- The total dollar cost of the financing
- The annual percentage rate or an equivalent annualised figure
- The payment amount, frequency and term
- Any prepayment terms, and whether early payoff reduces the total
This is useful to you. Where a disclosure is provided, read it, and use the annualised figure to compare offers rather than the factor rate alone. Our factor rate to APR calculator shows why the two numbers look so different.
States with commercial financing disclosure regimes
The following states have enacted commercial financing disclosure or registration requirements. Scope, thresholds, transaction types covered and effective dates vary meaningfully between them, and the list continues to grow.
| State | Regime covers |
|---|---|
| California | Disclosure, including an annualised rate |
| New York | Disclosure, including an annualised rate |
| Utah | Registration and disclosure |
| Virginia | Registration for sales-based financing, plus disclosure |
| Georgia | Disclosure |
| Florida | Disclosure, with obligations reaching brokers |
| Connecticut | Registration and disclosure |
| Kansas | Disclosure |
| Missouri | Registration and disclosure |
Requirements change. If you want to know precisely what applies to a transaction you are being offered, ask the provider to identify the state law it is disclosing under, and speak to your own attorney.
How we operate
We are a broker, not a lender. 10K Funding LLC does not make credit decisions, does not lend its own money, and does not set rates or terms. Those are set by the third-party funding provider that offers you financing.
We do not charge you a fee. Funding providers pay us a commission when a transaction closes.
We present offers as they are given to us. Where a provider supplies a state-required disclosure, we pass it to you unchanged and we encourage you to read it before you sign.
Nothing on this site is an offer of credit. Amounts, ranges, timeframes, partner match counts and calculator outputs are illustrations based on general experience, not commitments.
We tell you when the answer is elsewhere. If a Community Development Financial Institution, an SBA loan or supplier terms would serve you better than this channel, we will say so. Those options are usually far cheaper.
Questions worth asking on any offer
Whatever state you are in, and whether or not a formal disclosure is required there, ask for these in writing before you sign:
- The total dollar amount you will repay
- The amount actually disbursed to you after any origination, underwriting or ACH fees
- The payment amount, the frequency, and the expected term
- Whether the payment reconciles if your revenue falls
- Whether early payoff reduces the total, and by how much
- Whether a personal guarantee or a confession of judgment is attached
- Whether taking additional financing would constitute default
A provider unwilling to answer those in writing is telling you something.
Contact
Questions about this page, about how we operate in your state, or about a disclosure you have received:
10K Funding LLC, 1 S Madison Ave, Spring Valley, NY 10977 · office@10kfunding.com
This page is general information about the regulatory landscape. It is not legal advice, and it does not describe every requirement that may apply to a given transaction. Consult your own attorney about your situation.