This is a plain-English summary for business owners, not legal advice. Laws and regulations change. Check the statute and the regulator's guidance, or ask an attorney, before relying on it.
At a glance
| Law | An Act Requiring Certain Financing Disclosures (Public Act 23-201) |
|---|---|
| Citation | Conn. Gen. Stat. §§ 36a-861 et seq. |
| Applies from | July 1, 2024 The Department of Banking said it would not enforce the disclosure requirements before October 1, 2024. |
| Deal size covered | $250,000 or less |
| Products covered | Sales-based financing only (merchant cash advances and similar revenue-based products) |
| Estimated APR required | No |
| Registration | The law includes a registration requirement for providers and brokers, administered by the Department of Banking. |
| Regulator | Department of Banking |
Key points
- Disclosures include the disbursement amount and the manner, frequency and amount of each payment, or a schedule and the average projected monthly payment if payments vary.
- Connecticut does not require an APR, and its $250,000 threshold is the lowest of these states.
What this means when you're comparing offers
Connecticut's disclosures give you the dollar figures but not an annual rate. That makes it hard to compare a sales-based advance against a loan quoted with an interest rate, and a short, expensive offer can look cheap if you only see the finance charge.
You can fill the gap yourself. From the disclosure, take the amount disbursed (after fees), the total repayment and the payment schedule, and enter them in our merchant cash advance calculator (for factor-rate offers) or the loan comparison calculator (choose "Total amount to repay"). Both compute an estimated APR by the Regulation Z Appendix J actuarial method.
What a disclosure typically shows
The exact list varies by state and product, but commercial financing disclosures generally cover the total amount of financing, the amount actually disbursed after fees, the finance charge or total cost, the total repayment amount, and the payment amount and frequency. Check the statute cited above for Connecticut's precise requirements.
If an offer is covered and you weren't given a disclosure, ask for one before signing. If a provider refuses, treat it as a warning sign.
Other states
See all state commercial financing disclosure laws, including which require an APR and how deal-size limits compare.
Sources
- Connecticut Public Act 23-201 (SB 1032) (accessed 2026-09-26)
- Consumer Finance Monitor, Connecticut Department of Banking guidance on sales-based financing disclosures (accessed 2026-09-26)
- Consumer Financial Services Law Monitor, Connecticut enacts commercial financing disclosure and registration law (accessed 2026-09-26)