MCA Law by State
Same contract, different consequences.
Nearly every MCA contract selects New York law, but disclosure rules, confessions of judgment and enforcement differ by state. Each guide is bylined to Alana Reyes, Esq. All legal content must be attorney-verified before launch.
Merchant cash advance law in California
California requires commercial financing providers to disclose an APR and total cost on offers, which makes California term sheets easier to compare than most. Confessions of judgment are generally unenforceable in California courts, but because your contract almost certainly selects New York law, funders sue there instead and then domesticate the judgment in California. Personal guarantees remain fully enforceable.
Merchant cash advance law in Florida
Florida’s Commercial Financing Disclosure Law, effective 2024, requires funders to state the total dollar cost of an advance but not an APR, so you still have to do the conversion. Florida homestead protection is among the strongest in the country, which changes how much a personal guarantee actually exposes. Funders sue in New York under the venue clause and domesticate the judgment in Florida.
Merchant cash advance law in Illinois
Illinois does not currently require APR disclosure on merchant cash advances, and Illinois law permits confessions of judgment in commercial contracts, so an Illinois business can face a judgment without a lawsuit either in New York or at home. Cook County courts see a steady flow of domesticated New York judgments, and an unaddressed COJ can become a frozen account quickly.
Merchant cash advance law in New Jersey
New Jersey has debated but, as of this review, not enacted a commercial financing disclosure law, so cost disclosure varies by funder. New Jersey businesses are frequently sued in New York under contract venue clauses and see judgments domesticated across the river within weeks. A New Jersey-licensed attorney should review any COJ or lien before you respond.
Merchant cash advance law in New York
New York is where MCA law is made. Nearly every advance contract in the country selects New York law and courts. New York requires APR-style cost disclosure on commercial financing offers, and since 2019 its courts will not enter confessions of judgment against out-of-state debtors. New York businesses, however, can still be hit with a COJ, and a New York judgment reaches your bank through a restraining notice within days.
Merchant cash advance law in Texas
Texas has no statewide APR disclosure requirement for merchant cash advances comparable to New York’s or California’s, so the factor rate is often the only cost figure you will see. Texas homestead and wage protections are among the strongest anywhere, which shapes how aggressively funders pursue personal guarantees. Contracts still route litigation to New York, with domestication in Texas afterward.
General legal information as of September 2026, not legal advice. Find local rankings: MCA debt relief near you.
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