Texas HB 700 commercial financing disclosure.

The short version.

Texas HB 700 establishes disclosure and registration requirements for commercial sales-based financing, with provisions taking effect September 1, 2025. Sales-based financing is financing repaid from a business's sales or revenue, and a merchant cash advance is a common form of it. The law is intended to give Texas businesses clearer, comparable information about the financing they are offered.

AI Cash Advance is a funding broker, not a lender or a direct funder. We take your funding request, qualify it, and refer it to third-party funding partners. The specific offer, and the disclosure that accompanies it, originates from the funding partner that extends the offer.

What HB 700 does, in plain terms.

At a high level, the law addresses two things for commercial sales-based financing offered to Texas businesses.

• Standardized disclosure. It calls for the key terms of a financing offer to be disclosed in a consistent way, so a business can understand the cost and compare offers rather than guess at them.
• Registration. It includes registration requirements that reach providers and brokers of commercial sales-based financing operating with Texas businesses.

A standardized disclosure for sales-based financing generally surfaces the kinds of figures a business owner actually needs: the amount funded, the total cost of the financing, the payment amount and how it is collected, the expected term, and any prepayment terms. The provider extending a specific offer is generally responsible for delivering that disclosure to the business.

What it means for brokers, and our role.

Because HB 700 reaches brokers as well as providers, it is relevant to how a funding broker like AI Cash Advance operates with Texas businesses. Here is our role, stated plainly.

• We are a broker. AI Cash Advance arranges and refers financing requests to third-party funding partners. We are not the provider and we are not a lender.
• The funder makes the offer. The cost, terms, and the disclosure that accompanies a specific offer come from the third-party provider extending it.
• We may be compensated by funders. When a deal is funded, AI Cash Advance may receive compensation from the funding partner.
• No registration is claimed here. This notice describes HB 700 generally. It does not assert any particular registration status for AI Cash Advance.

A few terms, defined.

Sales-based financing

Commercial financing repaid as a percentage of, or a fixed amount derived from, a business's sales or revenue. A merchant cash advance is a common form.

Provider

The party that extends a specific offer of commercial sales-based financing. In our model, the provider is one of our third-party funding partners, not AI Cash Advance.

Broker

A party that, for compensation, arranges or obtains commercial financing from a provider on behalf of a business. AI Cash Advance operates as a funding broker.

HB 700

The Texas law establishing disclosure and registration requirements for commercial sales-based financing, with provisions taking effect September 1, 2025.

APR-equivalent

An annualized cost figure shown for a merchant cash advance for comparison only. An advance has no contractual APR because it is a purchase of receivables, not a loan.

Where to learn more.

For details on how we compute the annualized figures our calculators display, see our open methodology, how we calculate the true APR. To understand where products are available and how state rules differ, see our state availability page, and for the California framework see our California disclosure notice.

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