STATE COMMERCIAL FINANCING LAW
Texas Commercial Financing Law
HB 700 (2025) · Tex. Fin. Code Ch. 398 · 7 TAC Ch. 86 (rules eff. Jul 9, 2026)
At a glance
Status: Law enacted
Signed: Jun 20, 2025
Effective: Sep 1, 2025 (disclosures) · registration by Dec 31, 2026
Who it covers: Commercial sales-based financing / MCA only
Size cap: Transactions over $1,000,000 exempt from disclosure
Regulator: TX Office of Consumer Credit Commissioner (OCCC)
Type of rules: Registration · MCA / sales-based financing only · Broker rules
Key requirements
Both providers AND brokers of sales-based financing must register with the OCCC by Dec 31, 2026, renewing annually by Jan 31.
Written disclosures required: amount financed, finance charge, total repayment, all potential fees, and repayment terms — no APR.
Unique ACH restriction: no automatic debiting of a merchant’s deposit account unless the provider holds a validly perfected, first-priority security interest in that account.
No de minimis exemption — even one Texas deal triggers the law.
Final implementing rules (7 TAC Chapter 86) took effect July 9, 2026: registration runs through NMLS, "key individuals" — 10%+ owners and control persons — must be identified, and prewritten or post-dated checks count as automatic debit mechanisms, closing that workaround.
What to watch
The biggest state economy yet to regulate MCA directly; expect OCCC registration to become a standard diligence item.
Texas coverage from Funder Intel
Nov 2, 2026 Texas Financing Registration Deadline Nears: What Funders and Brokers Should Know
Aug 25, 2025 CFG Merchant Solutions is excited to announce the launch of a brand-new loan product offering for Texas
Jun 23, 2025 Texas Governor Signs HB 700 Into Law; What Funders and Brokers Must Do Next
May 30, 2025 Things that won't be bigger in Texas: Sales-Based Financing
May 27, 2025 Centrex lawsuit dismissed | Roglieri's Co-Conspirator plea | Major TX HB 700 update
Compare every state
Open the Commercial Financing Regulation Tracker map to compare all state laws side by side.
Search the Commercial Registration Database (members) to check who is registered.
Other states with laws: California · New York · Utah · Virginia · Georgia · Florida · Connecticut · Kansas · Missouri · Louisiana · Vermont · North Dakota
States with pending bills: New Jersey · Illinois · Maryland · North Carolina · Pennsylvania
Last verified October 2026. Compiled and verified by Funder Intel for general industry information. This is not legal advice. Laws change often, so check the statute and a qualified attorney before making compliance decisions.