MCA state disclosure timing rules in 2026 are nearly as varied as the form formats themselves. The disclosure must reach the merchant at a specific point in the offer-to-funding workflow, with violations triggering rescission rights and regulator enforcement.
State-by-state timing schedule (mid-2026).
California. - Trigger event: "Time of extension of the offer," interpreted by DFPI as the point at which the funder communicates specific terms (amount, factor, term, payment) to the merchant. - Method: Written or electronic delivery, with E-SIGN-compliant acknowledgment. - Reflection period: No mandatory waiting period; merchant can sign immediately after disclosure. - Practical workflow: Disclosure typically delivered as a PDF in the same email as the offer letter.
New York. - Trigger event: Before merchant signs the financing contract. - Method: Written disclosure, separately signed from the contract (the "double signature" rule). - Reflection period: DFS strongly encourages a 24-hour reflection window; some funders treat it as a soft requirement. - Practical workflow: Disclosure delivered, merchant signs disclosure first, then contract — often in a two-step DocuSign envelope.
Utah. - Trigger event: At the time of consummation of the commercial financing transaction. - Method: Written disclosure delivered to merchant. - Reflection period: None mandated. - Practical workflow: Disclosure can be delivered concurrent with contract signing.
Virginia. - Trigger event: Before consummation; disclosure must be "provided" before the transaction is completed. - Method: Written or electronic delivery. - Reflection period: None mandated. - Practical workflow: Disclosure typically delivered with the offer letter or contract package.
Georgia. - Trigger event: At least 24 hours before contract execution for transactions $50,000 and over; concurrent for smaller transactions. - Method: Written or electronic delivery with acknowledgment. - Reflection period: 24 hours for transactions $50,000+. - Practical workflow: Disclosure sent at offer time; contract sent next day for signing.
Connecticut. - Trigger event: At least 24 hours before contract execution. - Method: Written or electronic delivery. - Reflection period: 24 hours mandatory for all covered transactions. - Practical workflow: Two-day funding cycle: disclosure on Day 1, contract on Day 2.
Why the timing matters. - A late or missing disclosure gives the merchant the right to rescind the contract (full refund + funder loses fees). - Pattern violations expose the funder to administrative penalties and potential license revocation. - Class actions have emerged in California and New York alleging systematic disclosure-timing violations.
Electronic delivery requirements. - All six states accept E-SIGN-compliant electronic delivery. - Merchant must affirmatively consent to electronic delivery before receiving disclosure electronically. - Funder must retain proof of delivery (timestamp, recipient email, file content hash) for 4–7 years depending on state.
Multiple offers, multiple disclosures. - If a funder revises an offer (e.g., changes amount, factor, or term), a new disclosure must be delivered with the revised terms. - Material changes after disclosure but before signing reset any applicable reflection window. - California specifically requires a new disclosure if APR moves by more than 0.25 percentage points.
Broker-involved transactions. - The funder retains primary disclosure obligation, but the broker is responsible for ensuring delivery in practice. - Some funders push disclosure delivery to brokers via API or portal; others handle it directly. - New York requires broker compensation to be itemized in the disclosure, which often requires broker-funder coordination on the exact dollar amount before delivery.
Same-day funding workflows. - Same-day funding (offer to wire in <24 hours) is operationally impossible in Georgia and Connecticut for transactions covered by the 24-hour reflection rule. - Funders frequently structure offers to fall below state-specific thresholds (Connecticut's $250K, California's $500K) to avoid disclosure rules entirely on large deals. - This "threshold gaming" is increasingly scrutinized by regulators.
Renewal and refinance transactions. - Renewals are generally treated as new transactions requiring fresh disclosure. - California specifically requires renewal disclosures even if the merchant has previously received disclosures from the same funder. - Refinances and consolidations require disclosure of the full new transaction, including any payoffs of prior advances.
Disclosure of changed terms post-signing. - If terms change after signing but before funding (e.g., reduced advance amount), most states require a fresh disclosure. - Best practice: re-send disclosure on any material change and require fresh acknowledgment.
Recordkeeping requirements. - California: 4 years. - New York: 6 years. - Utah: 5 years. - Virginia, Georgia, Connecticut: 5–7 years. - Records must include: disclosure PDF, delivery timestamp, recipient identification, acknowledgment record, and any revised disclosures.
Common confusion. First, "we can deliver disclosure at funding" — only Utah and Virginia accept concurrent delivery; the other four states require pre-signing or earlier. Second, "the 24-hour rule is the same everywhere" — only Georgia and Connecticut mandate it. Third, "email proves delivery" — funders need delivery confirmation (open receipt, click-through, or signed acknowledgment), not just send confirmation. Updated 2026-06-29.
Related terms
- MCA state disclosure form format by state — In 2026, California uses DFPI's standardized commercial financing disclosure form, New York requires the DFS Schedule A format with APR and fee breakdown, Utah accepts a regulator-prescribed template, and Virginia, Georgia, and Connecticut use state-specific forms with similar required fields.
- MCA pricing disclosure law — State laws (CA SB 1235, NY S5470, VA HB 1027, UT SB 183, GA SB 90, FL effective 2026-06-28) requiring MCA funders to disclose APR-equivalent, total cost, payment amount, term, and prepayment policy in TILA-style standardized format before contract signing.
- MCA state licensing requirements (2026) — As of 2026, California, New York, Utah, Virginia, Georgia, and Connecticut require commercial financing disclosure registration; California and New York additionally require broker registration; Florida, Texas, and most other states still have no MCA-specific licensing, though Illinois and Missouri have advanced 2026 legislation.
- MCA state-by-state disclosure — The patchwork of state-level disclosure requirements for MCAs in 2026: California (SB 1235), New York (CFDL), Utah, Virginia, Georgia, Florida (HB 1383 effective Jan 2026), Connecticut and New Jersey (effective July 2026), with Texas and Illinois pending. Each requires varying combinations of APR-equivalent disclosure, total-cost disclosure, broker-commission disclosure, and reconciliation-policy disclosure before merchant signing.
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