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Louisiana · In effect

Louisiana: Revenue-based financing disclosure law (Act 198 of 2025)

Louisiana's 2025 law requires a written disclosure of terms at or before closing a revenue-based financing transaction, the structure used by many merchant cash advances. It also declares that the charges in these deals are not interest. It took effect August 1, 2025, and does not require an APR, registration or broker rules.
In effect
2025-08-01
Deal size covered
None stated in the law
Estimated APR
Not required
Registration
Not required

What it means for you

For a revenue-based financing deal covered by the Louisiana law, you should get one written disclosure, at or before closing, of the funds provided, the amount actually disbursed, the total repayment, the total dollar cost, the payment terms and any prepayment cost or discount. You will not see an APR unless the funder adds one. The law does not name an enforcing agency or set penalties.

Law
Revenue-based financing disclosure law (Act 198 of 2025)
Citation
La. R.S. 9:3137.10
Enacted
2025-06-08
Effective
2025-08-01
Regulator
No agency named in the law
Who it covers
Revenue-based financing transactions: a business sells or agrees to forward a percentage of its sales, revenue or income, and the payment obligation rises and falls with sales volume. That is the structure of many merchant cash advances.
Registration
None under this law.
Brokers
None stated in the law.

What must be on the disclosure

  • Total amount of funds provided
  • Amount actually disbursed after any deductions
  • Total amount to be repaid
  • Total dollar cost
  • Manner, frequency and amount of payments, and how they are calculated
  • Whether there are any costs or discounts for prepayment

What a Louisiana MCA offer must show

One written disclosure, at or before closing, states the cost in dollars and the payment terms.
  • Total funds provided, and the amount actually disbursed after deductions
  • Total amount to be repaid
  • Total dollar cost
  • Manner, frequency and amount of payments, and how they are calculated
  • Whether prepayment carries any cost or discount

Only 1 disclosure is required for each transaction. A modification, forbearance or other change to a closed deal does not trigger a new one.

The charges are not interest

The law states that amounts charged in these deals are not interest.

R.S. 9:3137.10 says amounts charged in a revenue-based financing transaction, whether called a fee, a discount or anything else, are not interest. It also says the transaction is not one "for the use, forbearance, or detention of money."

The definition requires the payment obligation to rise and fall with sales. A deal with fixed payments that do not track sales may not fit it. See MCA reconciliation rights.

What the Louisiana law does not do

It requires 1 disclosure; it does not require an APR, registration or broker rules, or set penalties.
  • It does not require an estimated APR.
  • It does not require providers or brokers to register.
  • It sets no dollar limit and lists no exemptions.
  • It does not name an enforcing agency or set penalties.

This page is general information, not legal advice.

Who is exempt

Deals and providers the law doesn't reach.
  • None listed in the law

Questions

What counts as revenue-based financing in Louisiana?

An agreement where a business sells or agrees to forward a percentage of its sales, revenue or income, and the payment obligation rises and falls with sales volume.

Does Louisiana require an APR on MCA offers?

No. The required disclosure lists dollar amounts, payment terms and any prepayment cost or discount, with no APR.

Do MCA providers or brokers register in Louisiana under this law?

No. The law sets a disclosure requirement only.

Who enforces the Louisiana law?

The section does not name an agency or set penalties.

Sources

  1. Act No. 198 (2025 Regular Session), HB 470: enacts R.S. 9:3137.10 — Louisiana State Legislature (checked 2026-09-30)
  2. HB 470 (2025 Regular Session): bill history — Louisiana State Legislature (checked 2026-09-30)
  3. HB 470 (2025) resume digest — Louisiana State Legislature (checked 2026-09-30)
  4. HB 470 (2025) enrolled text — Louisiana State Legislature (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.