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 | New York Commercial Finance Disclosure Law |
|---|---|
| Citation | N.Y. Fin. Serv. Law §§ 801–812; 23 NYCRR 600 |
| Applies from | August 1, 2023 |
| Deal size covered | $2,500,000 or less |
| Products covered | Sales-based financing, closed-end financing, open-end financing and factoring |
| Estimated APR required | Yes |
| Regulator | Department of Financial Services (DFS) |
Key points
- Required disclosures include the total amount financed, the amount disbursed after fees, the total repayment amount, the estimated APR, the average monthly payment, and any prepayment charges.
- At $2.5 million, New York covers much larger deals than most states.
What this means when you're comparing offers
Covered offers in New York must show an estimated APR, so you can compare a merchant cash advance, a short-term loan and a line of credit on the same scale. It's still worth checking the number yourself: for sales-based products the APR depends on the provider's forecast of your sales, and a different forecast gives a different APR.
Take the amount disbursed (after fees), the total repayment and the payment schedule from the disclosure and enter them in our merchant cash advance calculator or loan comparison calculator. If your result is far from the disclosed APR, ask the provider which payment schedule they assumed.
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 New York'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
- Venable LLP, New York Commercial Financing Disclosure Requirements (accessed 2026-09-26)
- Venable LLP, State Commercial Financing Disclosure Laws (March 2026) (accessed 2026-09-26)