Texas Funding
Commercial financing disclosure context for Texas
Overview
Texas enacted a commercial sales-based financing law focused on merchant cash advance and revenue-based financing structures.
Transaction scope
Commercial sales-based financing of less than $1,000,000 for Texas recipients, subject to statutory exemptions.
Reviewed status
Effective September 1, 2025.
Last reviewed 2026-05-11
Key Requirements
- Provide written disclosures for covered commercial sales-based financing offers
- Register with OCCC by the statutory registration deadline when covered
- Avoid prohibited confession-of-judgment provisions
- Review ACH and security-interest restrictions before using automated repayment structures
- Track broker and provider obligations separately
Required Disclosures
- Total financing amount
- Disbursement amount
- Finance charge
- Total repayment amount
- Estimated time period for payments to equal total repayment amount
- Payment amounts and frequency or variable-payment method
- Potential fees and charges
- Prepayment or refinance finance charges and fees
- Collateral or security interests
Penalties for Non-Compliance
- OCCC enforcement
- Civil penalties up to $10,000 per violation
- No private enforcement based on the reviewed 2026 compliance update
Registration and Enforcement Notes
Providers and brokers of commercial sales-based financing must register with the Texas Office of Consumer Credit Commissioner by December 31, 2026 and renew annually.
OCCC administers and enforces the law. Current reviewed commentary says HB 700 is not enforceable by private litigants and OCCC may seek civil penalties up to $10,000 per violation.
Additional Resources
How Alpha Capital Group Reviews State Context
At Alpha Capital Group, we review state-specific commercial financing requirements with product structure, transaction size, and partner obligations in mind. Our process is designed to support:
- Complete transparency in all financing terms
- Clear disclosure of fees, rates, and payment structures
- Review of applicable state-specific registration requirements
- Adherence to all telemarketing and solicitation laws
- Maintenance of required records and documentation
Our team reviews state-level commercial financing disclosure context and partner requirements as part of business-purpose funding preparation. This page is informational and is not legal advice.
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