Missouri merchant cash advance law: what your offer has to show
Missouri requires providers to disclose the terms of commercial financing of $500,000 or less, including merchant cash advances, at or before closing, with labeled lines like Total of Payments and Total Dollar Cost of Financing. Brokers must register with the Division of Finance and keep a surety bond. The law is RSMo § 427.300.
Which offers the Missouri law covers
Section 427.300 covers commercial financing to Missouri businesses, including accounts receivable purchases, which is how merchant cash advances are written. Deals over $500,000 are exempt, as are banks, providers with five or fewer deals in a year, and a few other categories.
The disclosure, line by line
The statute sets the exact labels:
| Line on the form | What it tells you | Check it against |
|---|---|---|
| Total Amount of Funds Provided | The headline advance | The purchase price |
| Total Amount of Funds Disbursed | What reaches you after fees and third-party payments | Your funding-day deposit |
| Total of Payments | The full payback | The purchased amount |
| Total Dollar Cost of Financing | Payments minus funds provided, including fees taken out | Subtract it yourself |
| Payments or Estimated Payments | Manner, frequency and amount | The ACH authorization |
| Prepayment | Any cost or discount, with the contract paragraph that governs it | That paragraph |
Do brokers have to register?
Yes. A broker can't do business in Missouri for pay without first registering with the Division of Finance and filing a surety bond.
Confession of judgment
The disclosure law doesn't address confessions of judgment. Ask a Missouri lawyer before you sign one.
Where to raise a problem
Questions about brokers go to the Missouri Division of Finance.
The prepayment reference
Missouri's form has to point you to the contract paragraph on prepayment. Read that paragraph before you plan an early payoff.
Keep your paperwork
Keep the disclosure with the signed contract and any broker's registration details. If something goes wrong, the Division of Finance will ask for both.
Sources
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 Missouri 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.