In one paragraph
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.
Disclosure
Absent a Texas disclosure statute for this product, a funder’s offer may show only the advance amount, factor rate and daily payment. Ask in writing for the total payback, the term in business days, and an APR. A refusal is information, and Zogby scores it.
Enforcement
A New York judgment is domesticated in Texas under the Uniform Enforcement of Foreign Judgments Act, then enforced through Texas procedures including bank garnishment. Texas does not permit wage garnishment for ordinary commercial debts, and the homestead exemption is unlimited in value for qualifying property.
Personal guarantees
Guarantees are enforceable in Texas, but the exempt-property rules mean a funder collecting on a guarantee is often limited to non-exempt assets and business accounts. This tends to make funders more willing to settle the personal exposure.
Industries and patterns
Oilfield services and owner-operator trucking carry the largest stacks we saw in Texas, often $250,000 and up across three or more funders, with volatile monthly revenue that makes reconciliation clauses central.
What to do first in Texas
Get the APR in writing or compute it yourself. Then inventory what is actually exposed under your guarantee before you negotiate; in Texas it is usually less than the collector implies.
General legal information as of September 2026, not legal advice, and no attorney-client relationship is created. Statutes and case law change; confirm with a Texas-licensed attorney before acting.