Missouri commercial financing disclosure law

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

Key points

• Applies to providers that consummate more than five commercial financing transactions with Missouri businesses in a calendar year.
• The law also regulates commercial financing brokers.

What this means when you're comparing offers

Missouri'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 Missouri'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.