Florida merchant cash advance law: what your offer has to show
Florida requires a written disclosure at or before closing on commercial financing of $500,000 or less, including merchant cash advances. It shows the total funds, what's disbursed, the total you'll pay, the dollar cost and how payments work. Brokers can't collect advance fees, and the attorney general alone enforces it under Florida Statutes §§ 559.961 to 559.9615.
Which offers the Florida law covers
The law covers commercial financing transactions of $500,000 or less. It doesn't apply to banks and their affiliates, Farm Credit lenders, real-estate-secured deals, leases, some dealer financing, or providers doing five or fewer deals a year.
The disclosure, line by line
Section 559.9613 lists the disclosure lines:
| Line on the form | What it tells you | Check it against |
|---|---|---|
| Total amount of funds provided | The headline advance | The purchase price |
| Total amount disbursed, if less | What's left after fees, payoffs of a prior balance and third-party payments | Your funding-day deposit |
| Total amount to be paid | The full payback | The purchased amount |
| Total dollar cost | Payback minus funds provided | Subtract it yourself |
| Manner, frequency and amount of payments | Or, if they vary, the estimated first payment | The ACH authorization |
| Prepayment | Whether paying early has a cost or a discount | The contract |
Do brokers have to register?
Florida doesn't register brokers, but § 559.9614 bars them from charging an advance fee, from false or misleading statements, and from advertising without their real address and phone number.
Confession of judgment
Under § 55.05, a power of attorney to confess judgment signed before a lawsuit is void. A judgment confessed in another state can raise different questions, so ask a Florida lawyer.
Where to raise a problem
Complaints go to the Florida attorney general. Fines run $500 per violation up to $20,000, and more after a warning. There's no private lawsuit under this law, and a violation doesn't cancel the contract.
Sources
- Florida Statutes § 559.9613 (commercial financing disclosures)
- Florida Statutes § 559.9614 (prohibited acts by brokers)
- Florida Statutes § 559.9615 (enforcement)
- Florida Statutes § 55.05 (powers of attorney to confess judgment)
This is general information, not legal advice. For your contract and your state, talk to a business lawyer. This page gets a legal review before it's indexed.
Funding a Florida business?
We check which funders fit and what the offer has to show before anything goes out. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.