State disclosures
Last updated: September 9, 2026
Several states regulate commercial financing and may require specific written disclosures before a business owner signs. Whether a disclosure is required can depend on where the business is principally directed or managed, the provider, the product, the amount, an exemption and the law's effective date. This page is general information, not a complete 50-state legal analysis. Always request and review the disclosure and agreement that apply to your transaction.
How revenue based funding may be structured
Revenue based funding, also called a merchant cash advance or sales-based financing, may be structured as a purchase of a portion of your future receivables. Whether a transaction is legally treated as a purchase or a loan depends on the signed agreement, the facts and applicable law. You may receive capital today and remit an agreed amount or share of revenue under the contract.
Disclosures you receive
When applicable law requires a pre-contract disclosure, we provide the required form or information before signing. The exact content, timing, cost metric and delivery method depend on the state, product, amount, recipient and any applicable exemption. Compare the disclosure with the final agreement and ask about any difference before signing.
State coverage changes
Commercial-financing disclosure laws are in force or scheduled to take effect in multiple states, and states continue to amend their scope, thresholds, exemptions, registration duties and required cost metrics. A state not named on this page should not be treated as a state where no disclosure applies. We review the transaction's applicable jurisdiction and requirements before issuing the final offer.
How cost may be described
A receivables purchase may describe economics with a factor rate and total remittance, while a loan may use interest and amortization. Do not assume that a factor rate is an APR or convert it yourself. Where applicable law requires an APR, estimated APR or another comparable metric, it appears in the required disclosure.
Ask us anything before you sign
If any figure on your term sheet or disclosure is unclear, ask before signing. If your business operates across states or the transaction is placed with a partner, ask which jurisdiction's disclosure applies and who will service the agreement. We would rather answer the question twice than fund a merchant who does not understand the agreement.
Requesting a copy
To request a copy of the disclosures applicable to your business and offer, contact info@foretrust-funding.com or call (215) 514-6931. Tell us the state where the business is principally directed or managed and, if known, the product and offer date so we can identify the relevant version.