If you run a business in Florida and you've applied for funding recently, you may have noticed something new in your paperwork: a standardized disclosure showing exactly how much financing you're receiving, what it will cost, and what you'll repay in total. That document isn't a courtesy. It's required by the Florida Commercial Financing Disclosure Law (FCFDL), one of the most important changes to small business funding in the state in years. This guide explains what the law requires, who it applies to, what it does not do, and how Florida business owners can use it to compare offers with confidence.
What the Florida Commercial Financing Disclosure Law Is
The FCFDL was enacted through House Bill 1353, signed in June 2023, and is codified in Chapter 559 of the Florida Statutes. It took effect on July 1, 2023, with disclosure requirements becoming mandatory for transactions completed on or after January 1, 2024. The law's purpose is straightforward: bring consumer-style transparency to commercial financing, a market that historically operated with far fewer disclosure rules than personal loans, mortgages, or credit cards.
Before laws like this one, a Florida business comparing a term loan, a line of credit, and a merchant cash advance had no standardized way to see costs side by side. Each product used its own pricing language: interest rates, factor rates, fees, holdbacks. The FCFDL requires covered providers to put the essential numbers in writing before the deal closes, so the business owner can see the real cost before committing.
Who and What the Law Covers
The FCFDL applies to providers of commercial financing transactions in Florida. A provider is generally defined as a person or company that completes more than five commercial financing transactions in the state during a calendar year, which means the law targets active funders rather than one-off private arrangements. Covered products include commercial loans, open-end lines of credit, and accounts receivable purchase transactions, which is the category that includes merchant cash advances and revenue-based funding.
The law covers transactions of $500,000 or less that are not secured by real estate. Several categories are exempt, including federally insured banks and credit unions (along with their subsidiaries and affiliates), licensed money transmitters, real-estate-secured loans, transactions above $500,000, and leases. In practice, that means the law is aimed squarely at the non-bank funding market that most Florida small businesses actually use, in the deal-size range where most small business funding actually happens.
What Funders Must Disclose Before You Sign
For covered transactions, the provider must give the business a written disclosure before the deal is consummated. The core items include the total amount of financing being extended, the disbursement amount you will actually receive after any fees or deductions are withheld, the finance charge (the total dollar cost of the funding), the total repayment amount, and the payment structure. For revenue-based products like merchant cash advances, where repayment timing depends on your sales, the disclosure reflects the estimated terms based on your business's revenue.
One difference worth knowing: unlike California and New York, whose disclosure laws require an estimated annual percentage rate (APR), Florida's law focuses on total dollar cost rather than mandating an annualized rate. For a merchant cash advance, that actually aligns with how the product works, since an MCA is priced with a factor rate and repaid on a schedule that flexes with revenue rather than a fixed annual term. If you want to understand how those two pricing systems relate, our guide on factor rates versus APR breaks it down.
The Broker Rules: No Advance Fees
The FCFDL also regulates brokers, the intermediaries who shop your file to funders. Under the law, brokers are prohibited from collecting advance fees from a business before delivering funding, from making false or misleading representations about their services, and from advertising without disclosing their actual address and telephone number. If a broker in Florida asks you to pay an upfront fee just to submit your application or 'secure' an offer, that is worth pausing on — Florida's broker rules speak to advance fees directly. Working directly with a funder eliminates this layer entirely, which is one reason many Florida businesses prefer dealing with the company that actually makes the funding decision.
What the Law Does Not Do
It's equally important to understand the FCFDL's limits. The law is a disclosure statute, not a rate cap. Florida has not imposed usury limits on commercial financing structured as a purchase of future receivables, because a properly structured merchant cash advance is a purchase and sale transaction rather than a loan. The law also does not currently require MCA funders to obtain a state license to operate in Florida, and the statute itself states that a violation does not affect the enforceability or validity of the underlying commercial financing transaction, and does not create a private right of action. Enforcement sits exclusively with the Florida Attorney General, who may impose fines of $500 per incident up to $20,000 in aggregate, rising to $1,000 per incident up to $50,000 for violations continuing after written notice.
In other words, the FCFDL gives you better information before you sign, but it does not change the fundamental responsibility every business owner has: read the agreement, understand the total repayment obligation, and make sure the payment structure fits your cash flow. Our guide on how to read a merchant cash advance contract walks through the key terms clause by clause.
How Florida Compares to Other States
Florida is part of a national trend. California and New York led with comprehensive disclosure laws that require estimated APR figures. Utah, Virginia, and Connecticut tie disclosures to provider registration. Texas passed House Bill 700 in 2025, focused specifically on sales-based financing, with provider registration administered by the state's consumer credit regulator. Georgia, Kansas, and Missouri have enacted their own versions, and more states have bills pending. For a multi-state business, that means the disclosure you receive may look different depending on where your company is principally managed, but the direction everywhere is the same: more transparency before signing.
How to Use the Disclosure to Compare Offers
The most practical value of the FCFDL is that it hands you the numbers you need to compare offers on equal footing. When you receive a disclosure, focus on three figures. First, the disbursement amount: the money that will actually land in your account after fees. Second, the total repayment amount: what you will pay back in full. Third, the payment terms: how much comes out, how often, and whether the schedule adjusts with your revenue. Two offers with the same headline funding amount can differ meaningfully once you compare these three lines side by side.
Also compare speed and structure, not just cost. A slightly more expensive option that funds in one business day and adjusts payments to your sales may serve a seasonal Florida business, such as a restaurant, retail shop, or hospitality operator, better than a cheaper product with a rigid payment schedule. The disclosure gives you the cost side; your cash flow reality supplies the rest of the decision.
What This Means for Working With a Direct Funder
At Y Millennial Funding, we fund Florida businesses directly, which means the disclosure you receive comes from the same company making the decision and wiring the funds. You deal with the company that makes the funding decision and wires the funds, with no advance fees and no gap between the offer you see and the deal you sign. Not all applicants qualify. If your business generates $25,000 or more in monthly revenue, you can apply and see your actual numbers, including the total repayment amount, before you commit to anything. Transparency laws like the FCFDL codify what direct funders should have been doing all along: showing you the real cost up front.
This article is for general informational purposes only and is not legal advice. Commercial financing laws change, and how they apply depends on the specific facts of your transaction. If you have questions about your rights or obligations under the Florida Commercial Financing Disclosure Law, consult a qualified attorney or the relevant state regulator.