Quick Answer: Kansas enacted the Commercial Financing Disclosure Act (Senate Bill 345), effective July 1, 2024, requiring providers of commercial financing of $500,000 or less — including merchant cash advances, treated as accounts-receivable purchase transactions — to disclose the deal’s terms in writing before or at the time of consummation. Required disclosures include total funds provided, total amount to be paid, total dollar cost, and payment frequency. The Act does not require a standard APR. The Kansas Attorney General enforces it exclusively, with civil penalties of $500 per violation, capped at $20,000. Kansas does not cap MCA rates; factor rates of 1.15 to 1.50 (roughly 40–200% APR) are legal if the dollar terms are disclosed. With about 260,000 small businesses, Kansas’s agriculture, aviation and aerospace, oil and gas, and logistics sectors are the heaviest MCA users. Request the written disclosure before signing, and use the MCA calculator to convert the numbers into an APR.
Kansas’s Commercial Financing Disclosure Act: What Changed July 1, 2024
Kansas passed Senate Bill 345, the Commercial Financing Disclosure Act, in April 2024, with an effective date of July 1, 2024. It put Kansas in the group of states — California, New York, Virginia, Utah, Connecticut, Texas, Georgia, Florida, Louisiana, and Missouri — that require some form of commercial financing disclosure.
What the Law Covers
A “commercial financing transaction” under the Kansas Act includes a business-purpose loan, an open-end credit plan, or an accounts-receivable purchase transaction of $500,000 or less. That last category — accounts-receivable purchase — is the legal form a merchant cash advance takes, which is how MCAs fall within the law. Financing above $500,000 is outside the Act’s scope.
Required Disclosures
Before or at the time the agreement is consummated, the provider must disclose:
| Required Disclosure | What It Means in Practice |
|---|---|
| Total funds provided | The advance amount in plain dollars |
| Total amount to be paid | The full amount you will repay the provider |
| Total dollar cost of financing | The fee, in plain dollars |
| Payment manner, frequency, and amount | Daily/weekly; ACH or holdback; estimated dollar amounts |
Note what is not required: a standard APR of the kind California and New York mandate. Kansas gives you the dollar figures; converting those into a comparable APR is still on you — the MCA calculator does this.
Enforcement
The Kansas Attorney General has exclusive authority to enforce the Act. Violations carry a civil penalty of $500 per violation, capped at $20,000 in aggregate, with additional penalties for repeat offenders. There is no private right of action, so the AG — not individual businesses — brings enforcement actions. If a provider fails to give you the required written disclosure, you can report it to the Kansas Attorney General’s office.
If a provider cannot produce the required written disclosure before you sign, they are either non-compliant or operating outside Kansas law — a reason to walk.
Kansas’s Small Business Market
Kansas is home to roughly 260,000 small businesses — more than 99% of all businesses in the state — employing close to half the private-sector workforce. Agriculture and aviation manufacturing anchor the economy and shape MCA demand.
Industries with the highest MCA demand in Kansas:
Agriculture and ag services — Wheat, cattle, and grain operations, plus farm-equipment dealers and ag-service companies, face pronounced seasonal swings in input and equipment costs. MCAs provide short-term working capital between production cycles. Typical advance range: $25,000–$150,000.
Aviation and aerospace manufacturing — Wichita, the “Air Capital of the World,” anchors a dense aerospace supplier ecosystem around Boeing Wichita (the former Spirit AeroSystems site Boeing reacquired December 8, 2025) and Textron Aviation (Cessna, Beechcraft). Tier 2/Tier 3 suppliers buying materials ahead of milestone payments use MCAs to bridge, though invoice factoring is often cheaper. Typical advance range: $50,000–$300,000.
Oil and gas services — Service companies in central and western Kansas face delayed invoice cycles from operators and use MCAs to bridge working capital. Typical advance range: $50,000–$250,000.
Logistics and distribution — Businesses around Kansas City and along the I-35 corridor handle lumpy invoice cycles between contracts. Typical advance range: $30,000–$200,000.
Restaurants, construction, and healthcare — Daily card-volume restaurants, contractors bridging owner payments, and independent practices bridging insurance reimbursements round out the heaviest MCA users. Typical advance range: $15,000–$200,000.
What an MCA Costs a Kansas Business: Real Numbers
Your Kansas disclosure shows the total dollar cost, but not a standard APR. Estimate the APR yourself to compare offers; verify against your disclosure using the calculator.
| Advance Amount | Factor Rate | Total Repayment | Your Fee | Est. APR (6-month term) |
|---|---|---|---|---|
| $25,000 | 1.20 | $30,000 | $5,000 | ~40% |
| $25,000 | 1.35 | $33,750 | $8,750 | ~70% |
| $50,000 | 1.25 | $62,500 | $12,500 | ~50% |
| $50,000 | 1.40 | $70,000 | $20,000 | ~80% |
| $75,000 | 1.30 | $97,500 | $22,500 | ~60% |
| $100,000 | 1.30 | $130,000 | $30,000 | ~60% |
| $100,000 | 1.45 | $145,000 | $45,000 | ~90% |
APR estimates assume a 6-month repayment term. Actual APR depends on your daily revenue and holdback percentage. Because the Kansas Act does not require a standard APR, calculate it yourself from the disclosed dollar figures — the MCA calculator does this in seconds.
Factor rates for Kansas businesses typically range from 1.15 to 1.50. Established businesses (2+ years, $25K+/month revenue, 620+ FICO) usually see 1.15–1.25. Newer or credit-challenged businesses should expect 1.35–1.50.
MCA Providers That Fund Kansas Businesses
All providers in our directory fund Kansas businesses. The ones most relevant to KS borrowers:
| Provider | Min FICO | Min Monthly Revenue | Factor Rate Range | Best For |
|---|---|---|---|---|
| Kapitus | 625+ | ~$20,800/mo | 1.10–1.50 | Large advances, established KS businesses |
| Credibly | 500 | $15,000/mo | 1.11–1.45 | Credit-challenged borrowers; lower minimum |
| Fora Financial | 500 | $12,000/mo | 1.18–1.48 | Bad credit, fast funding under $500K |
| OnDeck | 625 | ~$10,000/mo | 1.10–1.50 | Established KS businesses, same-day funding |
| Libertas Funding | 600 | $75,000/mo | 1.10–1.35 | High-revenue aerospace and ag businesses |
| Forward Financing | 500 | $10,000/mo | ~1.20–1.45 | Smaller advances, newer businesses |
| National Funding | Not published | ~$20,800/mo | 1.10–1.20 | Lower factor rates, same-day |
| Lendio | 550+ | $10,000/mo | varies | Comparing multiple compliant offers at once |
Before signing with anyone: confirm the provider can hand you the written disclosure the Kansas Act requires. A provider that can’t or won’t is either non-compliant or operating outside Kansas law. Browse the full provider directory to compare terms.
Five Things to Check Before Signing an MCA in Kansas
1. Request the written disclosure. The Kansas Act entitles you to written disclosure of total funds, total repayment, total dollar cost, and payment frequency before or at the time of consummation. If a provider skips it, report them to the Kansas Attorney General.
2. Calculate the APR yourself. The Act gives you dollar figures, not a standard APR. A 1.30 factor at a 6-month pace is roughly 60% APR — convert your offer with the MCA calculator.
3. Confirm a genuine reconciliation provision. A legitimate MCA lets you request a holdback reduction if monthly revenue drops 20–30%. No reconciliation clause is a major warning sign.
4. Read the governing-law and forum-selection clause. Many MCA contracts route disputes out of state — know where you’d have to litigate.
5. Model your daily cash flow. If daily deposits average $4,000 and holdback is 15%, you’re committing $600/day. Make sure you can cover payroll, rent, and inputs on what’s left.
When an MCA Makes Sense for a Kansas Business
An MCA is worth considering when you need capital in 24–72 hours and can’t wait for bank or SBA approval, when a traditional loan is inaccessible, and when the use of funds generates returns exceeding the MCA fee.
An MCA is the wrong choice when you’re funding ongoing operating losses, when you already have an open MCA, or when a cheaper option is reachable — Kansas businesses with 12+ months of history and $10K+/month revenue often qualify for a business line of credit at far lower APR. See MCA alternatives, MCA vs. SBA loans, and Is a Merchant Cash Advance Worth It?.
Browse the provider directory and model any offer with the MCA calculator before signing.
Kansas Industry MCA Guides: Trucking Companies — SB 345 mandatory dollar-cost disclosure (eff. July 1, 2024; no APR required — convert at /calculator); no domestic COJ (statute repealed Jan 1, 1970; OH/NJ forum-selection risk via UEFJA); WC mandatory when annual payroll exceeds $20K for non-construction carriers (K.S.A. 44-505); I-70 east-west backbone (~424 miles across KS) + I-35 through Wichita and KC + I-135 Salina-to-Wichita; #1 wheat state — grain haulers face harvest-season (May-Jun wheat, Sep-Nov corn/sorghum) fuel-and-settlement timing crunch; western KS cattle feedlots (Dodge City, Garden City, Liberal) — feedlot-to-packing-plant runs; Boeing Wichita (~13,000–15,000 workers, Spirit reacquired Dec 2025) + Textron Aviation (~9,500–10,000) aerospace supply chain net-30/45 billing gap; Panasonic De Soto $4B EV battery plant JIT logistics (Johnson County, second wing under construction 2026); Kansas City Logistics Park (Gardner/Edgerton) + BNSF intermodal as one of the top inland freight hubs in the US; Kansas Turnpike per-axle toll on eastern I-70. Construction Contractors — SB 345 mandatory dollar-cost disclosure (eff. July 1, 2024); no statewide GC license (all local: Wichita MABCD, Johnson County, KCK, Topeka); no domestic COJ (statute repealed Jan 1, 1970 — no replacement; OH/NJ forum-selection risk via UEFJA); WC mandatory for construction employers from first employee (K.S.A. 44-505 — no $20K payroll exemption; private NCCI market); no state prevailing wage (repealed 1987); Panasonic De Soto $4B EV battery plant (world’s largest in US; second wing under construction 2026; ~4,000 jobs; Johnson County) + Boeing Wichita (~13,000–15,000 workers, Spirit reacquired Dec 2025) + Textron Aviation (~9,500–10,000) + Fort Riley Davis-Bacon federal scope ($2B+ economic impact). Cleaning & Janitorial Services — SB 345 dollar-cost disclosure (eff. July 2024); no domestic COJ (statute repealed 1970); WC mandatory when annual payroll exceeds $20K (K.S.A. 44-505 non-construction threshold; NCCI 9014); routine building cleaning exempt from KS sales tax but floor waxing/polishing taxable under K.S.A. 79-3603(b) — segregate charges on every invoice; Boeing Wichita (~13,000 workers) + Textron Aviation (~10,000) 30–60 day security-badge pre-billing gap; KU Health System (~18,000 employees, 6 hospitals) + Ascension Via Christi + Wesley Medical Center 45–90 day infection-control credentialing; Johnson County KC metro corporate and advanced-manufacturing corridor (Panasonic’s $4B De Soto battery plant — largest private investment in Kansas history, QTS data centers, Garmin Olathe). Auto Repair Shops — SB 345 dollar-cost disclosure (eff. July 2024); no domestic COJ (statute repealed 1970); no state shop license; no vehicle inspection or emissions testing statewide; WC mandatory when annual payroll exceeds $20K (K.S.A. 44-505); Boeing Wichita (~13,000 workers, Spirit reacquired Dec 2025) + Textron Aviation (~9,500) + Fort Riley ($2B+ economic impact) anchor the demand. Painting Contractors — SB 345 disclosure, no domestic COJ procedure, KDHE state-authorized RRP, Wichita aerospace supply chain, KC metro cross-state dynamic, Hail Alley post-storm repaint pipeline. Landscaping & Lawn Care — SB 345 disclosure (dollar-cost, $500K), no domestic COJ (old statute repealed 1970), KDA Category 3A/3B pesticide cert (distinct subcategories), no statewide landscape contractor license, Johnson County HOA belt (Overland Park/Olathe/Lenexa/Leawood), Flint Hills native prairie restoration niche, Koch campus commercial grounds, no prevailing wage law, $7.25/hr federal minimum wage floor. Roofing Contractors — AG Roofing Registration required (K.S.A. 50-6,122+; $500/yr, $500K GL), AOB ban (SB 55, eff. July 1, 2026 — 60–120-day payment window), SB 345 MCA disclosure, no domestic COJ, KDHE state-authorized RRP (federal cert insufficient), Hail Alley (312+ events near Wichita since 2004), Boeing Wichita (~15,000 workers), NCCI 5551 WC from first construction employee, Johnson County + KC metro cross-state dynamic. Plumbing Contractors — SB 345 mandatory dollar-cost disclosure (eff. July 1, 2024); no statewide plumbing license (all municipal: Wichita MABCD/Sedgwick County, Johnson County, Wyandotte County/KCK, Topeka); no domestic COJ (statute repealed Jan 1, 1970 — no replacement); WC mandatory for construction category regardless of payroll (K.S.A. 44-505); no state prevailing wage (repealed 1987); Boeing Wichita aerospace industrial process piping + Johnson County suburban draw cycles + Fort Riley Davis-Bacon federal work. HVAC Contractors — SB 345 mandatory disclosure (dollar-cost, $500K, eff. July 1, 2024); no statewide HVAC license (all local: Wichita MABCD $5K bond/$360 contractor registration, Johnson County, KCK, Topeka); no domestic COJ (repealed 1970); WC mandatory for construction employers (K.S.A. 44-505 — no $20K payroll exemption); EPA 608 uniform federal cert (no Kansas state variant); KDHE RRP state-authorized (April 9, 2010 — federal cert insufficient for pre-1978 Kansas homes); Boeing Wichita aerospace HVAC (cleanrooms, test cells, compressed air) + Johnson County residential GC draw cycles + Fort Riley Davis-Bacon federal HVAC work. Electrical Contractors — SB 345 mandatory dollar-cost disclosure (eff. July 1, 2024); no statewide electrical license (all local: Wichita MABCD 2-yr experience + 75% ICC exam + 6 CEUs/yr, Johnson County city licensing, KCK, Topeka); no domestic COJ (statute repealed Jan 1, 1970 — no replacement); WC mandatory for construction employers (K.S.A. 44-505 — no $20K payroll exemption); NCCI 5190 (inside) / 5182 (outside line/wind); no state prevailing wage (repealed 1987); Wichita aerospace electrical (Boeing Spirit acquisition, Textron Aviation, precision cleanroom and test-cell systems) + KC metro hyperscale data center wave (QTS Realty Overland Park HQ, multiple Johnson County proposals; Google’s $10B Project Mica campus sits on the Missouri side of the metro) + Kansas wind energy corridor (9,714 MW installed, ~47–52% of state electricity, IBEW Local 271/124).
For city-specific guidance, see Merchant Cash Advance in Wichita — aerospace supply chain, Boeing Wichita, Textron Aviation, and the unique dynamics of the Air Capital’s Tier 2/3 supplier ecosystem. For the Johnson County suburb and corporate engineering hub, see Merchant Cash Advance in Overland Park — Black & Veatch B2B invoice trap, Aspiria tech campus (T-Mobile, WellSky, Netsmart), and Johnson County healthcare A/R.
Sources: Kansas Commercial Financing Disclosure Act / Senate Bill 345 (2024 Session), effective July 1, 2024 — Kansas Legislature (kslegislature.gov); Mayer Brown, “Kansas Enacts Commercial Finance Disclosure Law” (June 2024); Venable LLP and Greenberg Traurig client alerts (2024) confirming $500,000 coverage threshold, accounts-receivable-purchase (MCA) inclusion, $500-per-violation/$20,000-cap penalty, and exclusive Kansas Attorney General enforcement. Kansas small business statistics — U.S. SBA Office of Advocacy, Kansas Small Business Profile. Provider data — individual provider disclosures, verified 2026.
This guide is general information, not legal advice. Consult a Kansas attorney before signing any commercial financing agreement.
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