What it means for you
Before or when you sign an MCA with a covered provider for a Kansas business, you should get a disclosure of the funds provided, the funds disbursed, the total of payments, the total dollar cost, the payment terms and any prepayment cost or discount. A broker cannot charge you a fee in advance. You will not see an APR unless the funder adds one.
- Law
- Commercial Financing Disclosure Act
- Citation
- 2024 Kan. Sess. Laws ch. 29 (SB 345)
- Enacted
- 2024-04-12
- Effective
- 2024-07-01
- Regulator
- Kansas Attorney General
- Who it covers
- Providers that complete more than 5 commercial financing transactions with businesses located in Kansas in a calendar year, for commercial loans, commercial open-end credit and accounts receivable purchase transactions (a business selling its accounts at a discount), which is how merchant cash advances are usually structured. Brokers must follow conduct rules.
- Registration
- None under this act.
- Brokers
- A broker may not assess, collect or solicit an advance fee from a business, make false or misleading representations, or use false or deceptive representations in its business dealings.
What must be on the disclosure
- Total amount of funds provided
- Total amount of funds disbursed, if less than the funds provided
- Total of payments
- Total dollar cost of the financing
- Manner, frequency and amount of each payment
- Whether there are any costs or discounts for prepayment
What a Kansas MCA offer must show
- Total funds provided, and the funds disbursed if that is less
- Total of payments
- Total dollar cost
- Manner, frequency and amount of each payment
- Whether prepayment carries any cost or discount
The act applies to providers that complete more than 5 commercial financing transactions with Kansas businesses in a calendar year.
Broker rules in Kansas
A broker may not assess, collect or solicit an advance fee from a business. It may not make false or misleading representations, or make or use any false or deceptive representation in its business dealings. Brokers do not register under the act.
See how brokers get paid.
What the Kansas law does not do
- It does not require an estimated APR.
- It does not require providers or brokers to register.
- It creates no private right of action.
- It does not cover deals over $500,000.
The Attorney General has exclusive enforcement authority. Civil penalties are $500 per violation, up to $20,000 in total, and $1,000 per violation, up to $50,000, for repeat violations.
This page is general information, not legal advice.
Who is exempt
- Depository institutions and their regulated subsidiaries and affiliates
- Lenders regulated under the federal Farm Credit Act
- Financing secured by real property, leases and purchase-money obligations
- Loans or credit lines of $50,000 or more to motor vehicle dealers or rental companies
- Licensed money transmitters
- Providers that complete 5 or fewer transactions a year
- Transactions over $500,000
Questions
When did the Kansas law take effect?
July 1, 2024. The bill was approved on April 12, 2024 and took effect on publication in the statute book.
Can a Kansas broker charge an upfront fee?
No. A broker may not assess, collect or solicit an advance fee from a business.
Who enforces the Kansas law?
The Attorney General has exclusive authority. The act creates no private right of action.
Does Kansas require an APR?
No. The required disclosures are dollar amounts and payment terms.
Sources
- 2024 Session Laws of Kansas, Chapter 29 (Senate Bill 345) — Kansas Secretary of State (checked 2026-09-30)
- Senate Bill 345, enrolled — Kansas Legislature (checked 2026-09-30)
- SB 345: Enacting the commercial financing disclosure act — Kansas Legislature (checked 2026-09-30)
- Laws Effective July 1, 2024 — Kansas Legislative Research Department (checked 2026-09-30)
- Kansas Attorney General — Kansas Attorney General (checked 2026-09-30)
Last reviewed 2026-09-30. General information, not legal advice. Laws and regulations change; confirm with the regulator or an attorney.