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KANSAS • MCA LAW

Kansas SB 345

Kansas SB 345 is part of the national wave of commercial financing disclosure laws aimed at bringing transparency to merchant cash advances and other non-bank business financing.

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State-specific guidanceDisclosure requirementsActionable review
EFFECTIVE
Effective date not specified in current guidance.
COVERS
Coverage details follow the pattern of peer-state disclosure laws and generally target non-bank MCA, factoring, and alternative commercial financing providers doing business with Kansas small businesses. Specific thresholds and exemptions should be confirmed against the bill as enacted.
ENFORCED BY
Enforcement authority not specified in current guidance; Kansas Office of the State Bank Commissioner is the typical regulator for commercial financing matters.
KEY PROVISIONS

What SB 345 requires

Standardized disclosure

Covered providers are expected to deliver a standardized pre-contract disclosure summarizing funded amount, total repayment, fees, and cadence.

Plain-language terms

Financing terms are to be presented in plain, easy-to-read language so small business owners can evaluate offers without legal help.

APR-style comparison metric

Consistent with peer states, an annualized cost metric is expected so Kansas borrowers can compare MCA offers on a common basis.

Prepayment and reconciliation transparency

Any prepayment terms, reconciliation rights, and collection methods should be disclosed upfront rather than buried in the contract.

PENALTIES

What happens if a provider doesn't comply?

Specific penalty amounts are not detailed in the extraction on file. Borrowers and providers should confirm civil penalty and enforcement provisions against the enacted bill.

IF YOU'VE BEEN AFFECTED

What borrowers can do now

  1. Request a written pre-contract disclosure for any Kansas MCA or factoring agreement.
  2. Compare your funded amount to the total scheduled repayment to estimate your effective APR.
  3. Document any fees, prepayment terms, or daily debit rules that were not disclosed upfront.
  4. Contact Debt Consultants Group for a complimentary review of your Kansas MCA contracts.

Think your MCA may violate this law?

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