State disclosures
Last updated: September 7, 2026
Several states regulate commercial financing and require specific written disclosures before a business owner signs. This page explains what we provide and when.
What revenue based funding is
Revenue based funding, also called a merchant cash advance or sales-based financing, is a purchase of a portion of your future receivables. It is not a loan. You receive capital today and remit an agreed portion of your revenue until the purchased amount has been delivered.
Disclosures you receive
Where state law requires it, you receive a written disclosure before signing that sets out the total amount provided, the total amount you will remit, the total dollar cost, the estimated term, the remittance amount and frequency, any prepayment terms, and a description of all fees.
States with commercial financing disclosure laws
California, New York, Utah, Virginia and Georgia have enacted commercial financing disclosure requirements, and other states have proposed or adopted similar rules. Requirements differ by state and change over time. Where a state requires a specific disclosure form or a specific cost metric, we provide it in the form that state requires.
Cost is expressed as a factor rate
Because this is a purchase rather than a loan, cost is expressed as a factor rate rather than an interest rate or APR. Your funded amount multiplied by the factor rate equals the total you remit. Where a state requires an estimated APR or a comparable metric to also be shown, it appears on your disclosure.
Ask us anything before you sign
If any figure on your term sheet or disclosure is unclear, ask before signing. We would rather answer the question twice than fund a merchant who does not understand the agreement.
Requesting a copy
To request a copy of the disclosures applicable in your state, contact info@foretrust-funding.com or call (215) 514-6931.