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 | Commercial financing disclosure law (SB 345) |
|---|---|
| Citation | 2024 Kan. Sess. Laws ch. 29 (SB 345) |
| Applies from | July 1, 2024 |
| Deal size covered | $500,000 or less |
| Products covered | Commercial financing transactions |
| Estimated APR required | No |
| Registration | No registration requirement. |
Key points
- Applies to providers that consummate more than five commercial financing transactions with Kansas businesses in a calendar year.
- Required disclosures include the total amount provided, the amount actually disbursed if less, the total amount to be paid back, and the manner, frequency and amount of each payment.
- The Attorney General has exclusive authority to enforce the Act: a civil penalty of $500 per violation (capped at $20,000 in aggregate), rising to $1,000 per violation (capped at $50,000) after a written warning.
What this means when you're comparing offers
Kansas's disclosures give you the dollar figures but not an annual rate. That makes it hard to compare offers 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 Kansas'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
- Mayer Brown, Kansas Enacts Commercial Finance Disclosure Law (accessed 2026-09-26)
- Orrick, Kansas Enacts its Commercial Financing Disclosure Act (accessed 2026-09-26)
- Kansas Secretary of State, 2024 Session Laws ch. 29 (SB 345) (accessed 2026-09-26)