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TEXAS PLAYBOOK

Texas HB 700 Relief Guide

A step-by-step guide for Texas business owners using HB 700 to pause daily debits, challenge unfair MCAs, and settle for less.

Texas guideBorrower protectionsDisclosure review
WHO THIS IS FOR

Is this you?

  • Texas business owners currently paying daily or weekly MCA debits
  • Owners who signed an MCA before HB 700 took effect and want to know if the new rules apply
  • Owners facing a lawsuit, UCC lien, or bank-account lockbox from an MCA funder
  • Advisors, CPAs, or attorneys looking for a reference checklist to share with Texas clients
STEP-BY-STEP

Your relief path

Each step builds on the last. By step five you'll be ready to stop daily debits; by step seven you'll have a settlement strategy.

  1. 1

    Confirm you qualify

    HB 700 applies to commercial financing transactions involving Texas merchants. If your business operates in Texas and you hold an MCA, SBLOC, or daily-debit advance, the disclosure and enforcement provisions likely apply to you — even if the funder is based elsewhere.

  2. 2

    Pull your disclosure documents

    Locate the disclosure page the funder provided before you signed. HB 700 requires specific fields: amount financed, finance charge, estimated APR, payment schedule, and prepayment terms. A missing or misleading disclosure is grounds to challenge enforcement.

  3. 3

    Compare against the law

    Review our full HB 700 explainer to see each required field side-by-side with what appears in your contract. Gaps between the two — especially around APR and fees — are the leverage points.

  4. 4

    Document the debits

    Pull 60–90 days of bank statements showing the daily or weekly debits. Note any NSF or blocked-payment fees, reversed debits, and the total dollars paid so far. This record becomes your evidence in negotiations.

  5. 5

    Get a free contract review

    Our Texas-focused team reviews the contract against HB 700 and maps out what can be challenged: disclosure violations, reconciliation denials, usury-style APR arguments, and aggressive collection practices that HB 700 now limits.

  6. 6

    Pause the debits legally

    Depending on your situation, counsel may send a demand letter, dispute the ACH authorization, or petition the court for a protective order. HB 700 gives Texas owners real leverage to stop the bleed while a restructure is negotiated.

  7. 7

    Settle, restructure, or defend

    With debits paused and the contract under challenge, most cases resolve through a negotiated settlement at a fraction of the payback. Where the funder refuses to negotiate, HB 700 violations become a defense in court.

KEEP READING

Next steps

Two resources pair with this playbook — one to go deeper on the law, one to put it to work on your contract.

Full HB 700 law explainer

Every required disclosure field, enforcement provision, and effective date — the reference document behind this playbook.

Read the explainer

Free HB 700 contract review

Upload your agreement and we'll review it against HB 700 for free. A fifteen-minute call tells you where you have leverage.

Start my free review
Note. This playbook is informational and is not legal advice. HB 700 is a new law and its application is evolving. A Texas-licensed attorney should review the specific facts of your contract before you take action.

Texas owners — you have leverage.

HB 700 changed the rules. Let's find out what it changes for your contract.

Start my free HB 700 review