Are merchant cash advances legal in Florida?

Yes. MCAs are legal in Florida and are treated as a purchase of your future receivables rather than a loan, which is why they generally fall outside Florida's usury statutes when the repayment is genuinely contingent on your sales. Since January 1, 2024, providers doing more than five Florida deals a year must follow the Florida Commercial Financing Disclosure Law (HB 1353) and give you a standardized cost disclosure before funding.

What does Florida's HB 1353 disclosure law require?

Before you sign, a covered provider must hand you a written disclosure showing the total amount financed, the total dollar cost of the financing, the total repayment amount, payment amounts and frequency, and an itemization of all fees. Notably — and unlike New York's and California's laws — HB 1353 does not require an estimated APR figure, so Florida borrowers have to do that cost math themselves. The law covers commercial financing transactions of $500,000 or less; deals above that fall outside its disclosure protections. It applies to MCAs, commercial loans, and lines of credit. The Florida Attorney General enforces it, with civil penalties up to $20,000 (and up to $50,000 for repeat violations).

Is a confession of judgment enforceable against my Florida business?

Florida law does not allow confession-of-judgment (COJ) clauses to be used the way New York funders historically used them. Many MCA contracts pick another state's law (often New York or Utah), but a COJ obtained against a Florida business through those out-of-state channels has been challenged and is frequently unenforceable here. Never sign a contract with a COJ clause without having a Florida business attorney review it first.

How much does a merchant cash advance cost in Florida?

Cost is quoted as a factor rate, usually between 1.1 and 1.5. On a $50,000 advance at a 1.4 factor, you repay $70,000 — that's $20,000 in cost. Because repayment happens fast (often 4–12 months) through a daily or weekly holdback, the effective APR can run from roughly 40% to well over 100%. Florida's HB 1353 disclosure forces providers to put the total dollar cost and total repayment amount in writing — but, unlike New York's and California's laws, it does not require an APR figure, so you'll need to do that cost math yourself to compare honestly.

Who regulates merchant cash advances in Florida?

There is no single MCA license in Florida. The Florida Attorney General enforces the HB 1353 disclosure requirements, and the Florida Office of Financial Regulation oversees lending more broadly. Because an MCA is structured as a receivables purchase rather than a loan, it is not licensed the way a consumer lender is — which makes vetting the individual funder especially important.

Florida Merchant Cash Advance & Business Funding Guide

Florida is one of the busiest places in the country to be a small business — and one of the busiest places to get a merchant cash advance. According to SBA Office of Advocacy estimates, the state is home to roughly 3.5 million small businesses, which make up about 99.8% of all Florida businesses and employ close to 40% of the private workforce. Florida also ranks #1 nationally for new-business density. A lot of MCA funders are headquartered here too, which is great for speed and terrible for your odds of accidentally signing a bad deal.

This guide is written specifically for Florida owners: what changed under the state’s new disclosure law, what protections you actually have, when an MCA makes sense for a Florida business, and how to vet a funder before you take the money.

What Just Changed in Florida: The HB 1353 Disclosure Law

Florida is no longer a “sign first, find out later” state. The Florida Commercial Financing Disclosure Law (HB 1353) — signed in June 2023 and mandatory for deals consummated on or after January 1, 2024 — requires MCA providers and other commercial financers to give you a standardized written disclosure before you sign anything.

The law covers any “provider” that consummates more than five commercial financings in Florida in a calendar year, and it explicitly includes merchant cash advances (structured as accounts-receivable purchases) alongside commercial loans and lines of credit. It applies only to commercial financing transactions of $500,000 or less — deals above that threshold fall outside HB 1353’s disclosure protections entirely. Before funding, a covered provider must disclose:

The total amount of financing and the funds you actually receive
The total dollar cost of the financing
The total repayment amount
The payment amount, frequency, and term
An itemization of every fee

One important gap: unlike New York’s and California’s laws, HB 1353 does not require an estimated APR figure. It forces the total dollar cost and total repayment amount into the open, but it stops short of an annualized rate — which means the burden is on you to convert those numbers into a true cost you can compare across offers.

Enforcement sits with the Florida Attorney General. Penalties run to a $500 civil penalty per violation, capped at $20,000 for violations from the same set of transaction documents — and up to $50,000 for repeat violations after notice. The practical takeaway for you: if a Florida funder won’t put the total dollar cost and total repayment amount in writing before you sign, that’s a red flag, not a paperwork delay.

If you want to understand how an APR figure is built versus the factor rate you’ll be quoted — since Florida won’t hand you one — read APR vs. factor rate explained.

When an MCA Actually Makes Sense for a Florida Business

Florida’s economy leans heavily on tourism and hospitality, construction, retail, and seasonal trade — all industries with lumpy, swing-heavy cash flow. That’s exactly the profile an MCA is built for: fast cash against future card and bank revenue, with repayment that flexes with your sales.

An MCA can be a reasonable tool when:

A Gulf Coast or Miami restaurant needs to stock up and staff up before season and can’t wait six weeks for a bank.
A construction or trade business has signed work but is waiting on a slow-paying GC and needs to make payroll now.
A retailer needs inventory ahead of a holiday or tourist surge.
Your credit isn’t strong enough for a bank line, but your revenue is steady. (See getting an MCA with bad credit.)

An MCA is usually the wrong tool for long-term needs — buying a building, a multi-year expansion, or refinancing existing debt. The speed comes at a real cost, and stacking MCAs to cover an earlier MCA is how Florida businesses spiral.

Not sure whether you’d even qualify? You can check your match for free in a few minutes — it’s a soft inquiry and there’s no obligation to take any offer.

What It Costs and What You Need to Qualify

MCAs are priced with a factor rate, typically 1.1 to 1.5, not an interest rate. Multiply the advance by the factor to get your total payback:

$50,000 advance × 1.40 factor = $70,000 total repayment ($20,000 cost)

Repayment comes out as a holdback — a fixed daily or weekly debit, or a percentage of card sales — usually over 4 to 12 months. Because the money goes back fast, the effective APR is high, often 40% to over 100%. Note that HB 1353 forces the total dollar cost and total repayment amount into the disclosure but — unlike New York’s and California’s laws — does not require an APR figure, so the annualized cost is math you’ll have to run yourself. A full cost breakdown lives in how much an MCA costs.

Typical qualification bar for Florida funders:

~$10,000+ in monthly gross revenue (some go as low as $5,000)
3–6 months in business minimum
A personal credit score around 500+ (revenue matters more than credit)
3–6 months of business bank statements
A personal guarantee from any 20%+ owner

For the full rundown, see how to qualify for an MCA.

The Florida-Specific Protections You Should Know

Confession of judgment (COJ). This is the big one for Florida owners. A COJ lets a funder get a court judgment against you without a normal lawsuit. Florida does not permit COJ clauses to operate the way New York funders historically used them, but many MCA contracts choose another state’s law — often New York or Utah. A COJ pursued against a Florida business through those out-of-state channels has been challenged repeatedly and is frequently unenforceable here. Bottom line: do not sign a contract containing a COJ clause without a Florida business attorney reviewing it.

Usury. A genuine MCA is treated as a purchase of future receivables, not a loan, so it generally falls outside Florida’s usury caps — but only if repayment is truly contingent on your sales (with reconciliation when revenue drops). If a “merchant cash advance” has fixed daily payments with no reconciliation and a guaranteed payback regardless of sales, it may actually be a disguised loan, and that’s a real legal argument in Florida courts.

Read the reconciliation clause. A legitimate Florida MCA should let you request a downward adjustment of your daily debit when your revenue falls. If the contract has no reconciliation mechanism, treat it skeptically.

Vetting a Florida MCA Provider

Because so many funders operate out of Florida and there’s no MCA-specific license, vetting the company matters as much as the rate:

Demand the HB 1353 disclosure in writing before signing. No disclosure, no deal.
Compare the total repayment amount and total dollar cost across at least two or three offers — and since HB 1353 won’t give you an APR, convert each to an annualized rate yourself so you’re comparing apples to apples.
Check for a COJ clause and the governing-law clause. Out-of-state law plus a COJ is a warning sign.
Confirm a reconciliation clause exists.
Watch for stacking pressure — a funder pushing a second advance while you’re paying the first.
Verify the broker. Florida’s law restricts certain broker conduct; be wary of anyone collecting large upfront fees.

A deeper walkthrough is in how to choose an MCA provider, and it’s worth comparing the whole category against a bank loan or SBA option before you commit.

Legit Alternatives Florida Owners Should Compare First

An MCA shouldn’t be your first call if you have time. Compare:

SBA microloans and 7(a) loans — Florida has an active network of SBA lenders and SBDC advisors who help for free.
Business lines of credit — cheaper revolving capital if your credit and revenue support it.
Invoice factoring — often a better fit for construction and B2B firms waiting on slow-paying customers.
Local CDFIs and community banks — Florida has several mission-based lenders for smaller, fairer amounts.

A side-by-side of the realistic options is in our alternative funding guide.

Getting Started in Florida

If you’ve compared your options and a fast advance is the right call, the smart move is to get multiple offers and compare the disclosed total cost and total repayment amount rather than taking the first funder that calls you. MCA Guide is an independent matching service, not a lender — we don’t fund deals or guarantee approval. We connect Florida businesses with vetted funders so you can compare real terms side by side.

You can start a free funding match here. One short form, a soft inquiry, no obligation — and you’ll be in a far stronger position to use the protections Florida’s new law gives you.