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TEXAS • MCA LAW

Texas HB 700

Texas HB 700 forces MCA providers to give Texas small businesses plain-language disclosures of repayment amounts, fees, and APR-style cost metrics before any commercial financing contract is signed.

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State-specific guidanceDisclosure requirementsActionable review
EFFECTIVE
September 1, 2025
COVERS
Merchant cash advance providers and other non-bank commercial financers offering covered financing to Texas small businesses. Traditional banks and certain secured commercial lenders are exempt.
ENFORCED BY
Texas Office of Consumer Credit Commissioner (OCCC) and Texas Attorney General, per HB 700.
KEY PROVISIONS

What HB 700 requires

Plain-language repayment terms

HB 700 requires repayment terms and fees to be disclosed in plain language so owners know exactly what they are signing up for — not buried in dense contract pages.

Total fee and cost breakdown

All fees and costs baked into the MCA must be broken out for the borrower, eliminating hidden charges and surprise holdbacks.

Payment schedule transparency

Daily, weekly, or percentage-of-sales repayment terms must be clearly stated, giving owners a realistic view of the cash flow impact.

Borrower leverage against non-compliance

Providers that fail to deliver the required HB 700 disclosures expose themselves to regulatory action and give borrowers leverage in disputes and settlement talks.

PENALTIES

What happens if a provider doesn't comply?

Providers that fail to comply face state regulatory enforcement and civil exposure. Non-compliant contracts may be challenged by Texas borrowers as part of restructuring or settlement negotiations.

IF YOU'VE BEEN AFFECTED

What borrowers can do now

  1. Request a copy of your Texas MCA contract and all HB 700 disclosures.
  2. Compare your funded amount to the total scheduled repayment to estimate your effective APR.
  3. Document any daily debits, fees, or prepayment terms not disclosed up front.
  4. Schedule a complimentary HB 700 review with Debt Consultants Group.

Citations & sources

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