Utah merchant cash advance law: what your offer has to show
Utah's Commercial Financing Registration and Disclosure Act requires providers to register with the Department of Financial Institutions and give a disclosure on commercial financing, including merchant cash advances, of $1 million or less. The disclosure shows the total funds, the total you'll pay, the dollar cost and how payments work. The law is in Utah Code title 7, chapter 27.
Which offers the Utah law covers
The act covers commercial financing to Utah businesses up to $1 million, with exemptions for banks and some other providers. Providers register with the DFI through NMLS and renew each year.
The disclosure, line by line
The Utah 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 reaches you after fees | 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 | How you'll pay | The ACH authorization |
| Prepayment | Any cost or discount for paying early | The contract's prepayment section |
Do brokers have to register?
The Utah act registers providers. It doesn't set up a separate broker registration. Ask a broker who the provider is, and check that the provider is registered with the DFI.
Confession of judgment
The disclosure act doesn't address confessions of judgment. Ask a Utah lawyer before you sign one.
Where to raise a problem
Questions and complaints go to the Utah Department of Financial Institutions.
No APR on this form
Unlike California and New York, Utah's form doesn't show an APR. Work one out with the APR calculator so offers from different states compare on the same basis.
Sources
- Utah Code, title 7, chapter 27 (Commercial Financing Registration and Disclosure Act)
- Utah Department of Financial Institutions: commercial financing
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 Utah 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.