What it means for you
At or before closing an MCA with a covered provider for a Missouri 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 working on your deal must be registered with the Division of Finance and bonded. You will not see an APR unless the funder adds one.
- Law
- Commercial Financing Disclosure Law
- Citation
- Mo. Rev. Stat. § 427.300
- Enacted
- 2024-07-11
- Effective
- 2025-02-28
- Regulator
- Missouri Attorney General (enforcement); Missouri Division of Finance (broker registration)
- Who it covers
- Providers that complete more than 5 commercial financing transactions with businesses located in Missouri 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 who bring offers to Missouri businesses must register.
- Registration
- Brokers must register with the Missouri Division of Finance before doing business, post a $10,000 surety bond, pay a $100 fee and renew by January 31 each year for $50. Providers do not register.
- Brokers
- Brokers must register and be bonded. Missouri's law has no separate advance-fee ban like those in Florida, Georgia and Kansas.
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 Missouri 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 statute took effect August 28, 2024. Its disclosure and broker registration duties began February 28, 2025.
Broker registration in Missouri
No one may act as a broker in Missouri for compensation without first filing a registration with the Division of Finance. The registration needs a $10,000 surety bond and a $100 fee, and it renews by January 31 each year for $50.
Under the law, a broker obtains an offer from a funder and communicates it to a Missouri business for compensation. Providers themselves do not register.
What the Missouri law does not do
- It does not require an estimated APR.
- It does not include an advance-fee ban for brokers.
- It creates no private right of action, and a violation does not affect whether the agreement can be enforced.
- It does not cover deals over $500,000.
The Attorney General has exclusive enforcement authority. Fines are $500 per incident, up to $20,000, and $1,000 per incident, up to $50,000, after written notice. The law was amended in 2025, effective August 28, 2025.
This page is general information, not legal advice.
Who is exempt
- Depository institutions and their subsidiaries, affiliates and service corporations
- Lenders regulated under the federal Farm Credit Act
- Financing secured by real property, leases and purchase-money obligations
- Financing of $50,000 or more to motor vehicle dealers or rental companies
- Factoring of health care provider receivables
- Licensed money transmitters
- Providers that complete 5 or fewer transactions a year
- Premium finance agreements by registered premium finance companies
- Transactions over $500,000
Questions
Do MCA brokers have to register in Missouri?
Yes. A broker must file a registration with the Division of Finance before doing business, with a $10,000 surety bond and a $100 fee, and renew by January 31 each year.
Does Missouri require an APR?
No. The required disclosures are dollar amounts and payment terms.
Can I sue a funder under Missouri's disclosure law?
No. The law creates no private right of action, and a violation does not affect the enforceability of the agreement. The Attorney General enforces it.
When did the Missouri rules start?
The statute took effect August 28, 2024, and its disclosure and broker registration duties began February 28, 2025.
Sources
- RSMo § 427.300: Commercial Financing Disclosure Law — Missouri Revisor of Statutes (checked 2026-09-30)
- SB 1359 (2024), truly agreed and finally passed — Missouri Senate (checked 2026-09-30)
- MO SB 1359 (2024) bill status: signed July 11, 2024 — LegiScan (checked 2026-09-30)
- Commercial financing broker registration form — Missouri Division of Finance (checked 2026-09-30)
- Code of State Regulations, Title 20 (Division 1140 chapter list) — Missouri Secretary of State (checked 2026-09-30)
- Attorney General Office of Missouri — Missouri 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.