Merchant Cash Advance in Florida: 2026 Regulatory Guide

Quick Answer: Florida enacted HB 1353 (effective January 1, 2024), requiring MCA providers to disclose total dollar costs before you sign — but unlike California and New York, Florida does not require APR disclosure. Without a required APR, comparing an MCA offer against other financing on an apples-to-apples basis falls on you. Florida has 3.5 million small businesses and three MCA providers headquartered here. Florida courts confirmed in 2021 that properly structured MCAs fall outside Florida’s usury statute. Use the MCA calculator to convert any factor rate into an annualized cost yourself before comparing offers.

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HB 1353: Florida’s Commercial Financing Disclosure Law

Florida Governor Ron DeSantis signed HB 1353, the Florida Commercial Financing Disclosure Law (FCFDL), on June 26, 2023. Mandatory disclosures for covered transactions took effect January 1, 2024. Florida joined California and New York as one of the few states with a commercial financing disclosure framework that explicitly covers merchant cash advances.

Coverage: HB 1353 applies to commercial financing transactions of $500,000 or less consummated with a Florida business. It covers MCAs, commercial loans, and accounts receivable purchase agreements. Transactions above $500,000, real-property-secured loans, and leases are excluded. Federally insured depository institutions and their affiliates are also exempt. Providers who consummate five or fewer transactions in Florida per 12-month period are exempt.

What providers must disclose in writing before you sign:

Required Disclosure	What It Means in Practice
Total financing amount	The full advance amount in dollars
Disbursement amount	The net dollars you actually receive after fees or deductions, itemized
Total amount to be repaid	Advance × factor rate — the full payback number
Total dollar cost of financing	The fee in plain dollars
Payment details	Daily/weekly/monthly; ACH or holdback %; how variable payments are calculated
Prepayment terms	Whether early payoff earns a discount or has no effect

Enforcement: The Florida Attorney General is the sole enforcer of HB 1353. Penalties are $500 per violation, capped at $20,000 in aggregate — rising to $1,000 per violation and a $50,000 aggregate cap for violations that continue after the AG provides written notice. There is no private right of action — a borrower cannot sue a provider for a disclosure violation directly. Enforcement depends on the AG’s office opening a case.

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The Critical Gap: No APR Required

This is the most important practical distinction between Florida’s disclosure law and those of California and New York.

Under California’s SB 1235 and New York’s S5470B, MCA providers must state an APR — an annualized cost you can compare directly against a bank loan, line of credit, or SBA advance. Florida’s HB 1353 requires the total dollar cost but not the APR.

In practice: a Florida provider can legally quote you “factor rate 1.35, total repayment $67,500 on a $50,000 advance” without ever telling you this translates to approximately 70–75% APR (annualized, assuming 6-month repayment) or substantially higher true APR at faster repayment speeds.

What to do instead:

1. Take the total repayment figure from the required disclosure.
2. Subtract the advance amount to get the dollar fee.
3. Enter the advance, factor rate, and your estimated monthly revenue into the MCA calculator — it shows total cost, daily payment, and effective APR.
4. Compare that APR against competing offers and other financing options before signing.

Until Florida adds an APR requirement, that calculator step is the only way to put MCA costs on the same footing as other financing products.

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Florida vs. California vs. New York: Side-by-Side

Regulatory Feature	Florida (HB 1353)	California (SB 1235 + SB 362)	New York (S5470B)
Effective date	Jan 1, 2024	Dec 9, 2022 (SB 1235); Jan 1, 2026 (SB 362)	Aug 1, 2023
Transaction threshold	≤ $500,000	≤ $500,000	≤ $2.5 million
Dollar cost disclosure	✓ Required	✓ Required	✓ Required
APR disclosure	✗ Not required	✓ Required	✓ Required
Continuous APR (during sales)	✗ No	✓ Required (SB 362)	✗ No
Enforcer	Florida AG	California DFPI	New York DFS
Max penalty	$500/violation, $20K cap ($50K continued)	Civil enforcement (variable)	Civil enforcement (variable)
Private right of action	✗ No	✓ Yes (via CFPL)	Limited
COJ ban for out-of-state borrowers	✗ No	✗ No	✓ Yes (since 2019)

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Legal Framework: The Bona-Fide Sale Doctrine

Whether a Florida MCA is subject to the state’s usury statute (which caps civil interest at 18% and criminal at 25%) depends on whether the agreement is a true purchase of future receivables or a disguised loan.

Florida’s Third District Court of Appeal answered this question directly in Craton Entertainment, LLC v. Merchant Capital Group, LLC (2021), affirming that a properly structured MCA is a purchase of future business receipts — not a loan — and is therefore outside the reach of Florida’s usury statute. The court held that a transaction falls outside usury law when repayment is contingent on business performance and a portion of the funder’s investment is at speculative risk.

The practical test courts apply:

1. Contingency of repayment. Does the agreement require you to repay a fixed dollar amount regardless of whether your business generates revenue? If so — fixed daily ACH debits with no reconciliation mechanism — a Florida court may reclassify the transaction as a loan. A genuine MCA ties repayment to a percentage of actual daily receivables.

2. Reconciliation provision. A legitimate agreement includes a clause allowing you to request a holdback adjustment if your revenue drops materially (typically 20–30% below baseline). Ask your provider: “If my monthly revenue drops by 25%, can I reduce my daily payment?” A reputable provider will point to the specific contract clause. A provider who hedges is a warning sign.

3. Risk allocation. If your business closes with zero receivables remaining and the funder still has the right to collect the full advance amount from you personally, that looks more like a loan than a purchase of future receipts.

Why this matters: If a Florida court reclassifies your MCA as a usurious loan, the contract may be voidable and the funder may be required to forfeit the interest/fees entirely. This is both a protection for you and a quality signal — legitimate providers structure agreements to pass this test.

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OFR Licensing: What It Means for Florida Businesses

MCA providers operating in Florida are required to hold a Sales Finance Company license from the Florida Office of Financial Regulation (OFR), the state agency overseeing non-depository financial services. The OFR’s Division of Consumer Finance conducts examinations of regulated entities, including MCA providers.

You can verify whether a provider holds a Florida license at flofr.gov. A provider without an OFR license is operating outside Florida’s oversight framework — a meaningful red flag when you’re entrusting them with daily ACH access to your business bank account.

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Florida’s Small Business Market

Florida has 3.5 million small businesses — 99.8% of all businesses in the state, representing the 3rd largest small business market in the U.S. by count, after California and Texas. In 2023, Florida led the nation in new business formation with 667,031 new business applications — more than any other state and roughly 1,830 new businesses per day (U.S. Census Bureau Business Formation Statistics).

Industries with high MCA demand in Florida:

Tourism, hospitality, and food service: Florida’s 140+ million annual visitors generate intense seasonal revenue swings. A waterfront restaurant on the Gulf Coast may see 60–70% of its annual revenue arrive between November and April. MCAs work naturally here — holdbacks slow during off-season as daily card volume drops, without triggering a default. Typical advance: $25,000–$150,000.

Construction and trades: Florida’s ongoing residential and commercial construction market — particularly in South Florida, Tampa Bay, and the I-4 corridor — requires large up-front material and subcontractor costs before project payments arrive. Typical advance: $50,000–$250,000.

Healthcare and medical practices: Insurance reimbursement delays of 30–90 days create persistent cash flow gaps for independent Florida practices. MCAs fill the gap without requiring real estate collateral. Typical advance: $50,000–$200,000.

Retail: Florida’s mix of year-round tourist retail (theme park districts, outlet centers) and neighborhood stores creates both seasonal and ongoing MCA demand. Pre-holiday inventory builds and slow post-summer periods are common triggers. Typical advance: $15,000–$100,000.

Auto repair and services: High card volume, consistent daily revenue, and periodic large inventory needs make auto service businesses natural MCA candidates in Florida’s car-dependent market. Typical advance: $20,000–$100,000.

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What an MCA Costs a Florida Business: Real Numbers

Your provider must disclose total repayment and the dollar cost under HB 1353 — but not APR. Here is what those numbers look like converted into an annualized figure for comparison (simple annualized cost; true amortized APR is typically higher — use the calculator for your specific numbers):

Advance Amount	Factor Rate	Total Repayment	Your Fee	Est. Simple Annual Cost
$25,000	1.20	$30,000	$5,000	~40%
$50,000	1.25	$62,500	$12,500	~50%
$75,000	1.30	$97,500	$22,500	~60%
$100,000	1.35	$135,000	$35,000	~70%
$75,000	1.40	$105,000	$30,000	~80%
$100,000	1.45	$145,000	$45,000	~90%

Assumes 6-month repayment. Simple annual cost = (fee ÷ advance) × (12 ÷ months). True amortized APR (IRR-based, accounting for daily payment timing) typically runs 2–3× the simple figure. Use the MCA calculator to model your specific scenario.

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Top Providers Serving Florida Businesses

Three providers in our directory are headquartered in Florida — uniquely subject to OFR oversight and built around Florida’s market:

Everest Business Funding — Fort Lauderdale (1001 NW 62nd St). Direct lender founded 2014, advances from $15,000 to $2 million, factor rates 1.20–1.50. Focuses on businesses with lower credit scores and shorter time-in-business, with a reported 95% approval rate and funding typically within 24–48 hours. Suitable for Florida’s tourism and hospitality operators who need speed and flexible credit requirements.

Greenbox Capital — Miami. Specializes in alternative MCA funding for businesses with imperfect credit, offering advances with factor rates starting around 1.20. Miami-based with a national footprint; strong fit for South Florida’s dense small business market.

Uplyft Capital — Miami (3250 NE 1st Ave). Revenue-based financing nationwide; factor rates typically 1.15–1.45. Miami headquarters and statewide Florida relationships make Uplyft a natural fit for Florida-specific financing needs.

All 24 providers in our directory fund Florida businesses. National providers with strong Florida track records include Credibly (up to $600,000, FICO 500+), OnDeck (up to $250,000, transparent terms), Kapitus (up to $750,000, revenue-based), and Fora Financial (up to $1.5M, no fixed payments). Compare providers side-by-side on the compare page.

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How to Protect Yourself as a Florida MCA Borrower

Florida’s disclosure law gives you less built-in protection than California or New York. These steps close the gap:

1. Request the HB 1353 disclosure form in writing before signing. If a provider can’t produce a written disclosure showing total financing amount, disbursement amount, total repayment, and dollar cost — they are violating Florida law.

2. Convert the factor rate to APR yourself. Use the MCA calculator. A factor rate of 1.35 on a $50,000 advance sounds modest; 70–80% annualized cost compared to a 10% bank line of credit is a concrete comparison.

3. Verify the reconciliation provision. Find the clause in your agreement and ask the provider to walk you through it. This single clause determines whether your advance is a true MCA (reconciliation available, usury-exempt) or a disguised loan.

4. Check OFR licensing. Verify the provider holds a Florida Sales Finance Company license at flofr.gov before giving ACH access to your bank account.

5. Compare at least three offers. Factor rates, holdback percentages, advance amounts, and reconciliation terms vary meaningfully across providers. The compare page shows all 24 directory lenders side-by-side.

6. Watch for confession of judgment clauses. Unlike New York (which banned COJs against out-of-state borrowers in 2019), Florida has no equivalent ban. A COJ clause in your agreement lets the provider obtain a court judgment against you with no prior notice. Have an attorney review any agreement that includes one before you sign.

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Florida City Guides

The cost, alternatives, and industry mix differ by metro. These local guides cover what’s specific to running a business — and finding capital — in each city:

• MCA in Miami — South Florida’s import/export, hospitality, and real-estate economy
• MCA in Orlando — the theme park, convention (OCCC), and healthcare corridor
• MCA in Jacksonville — JAXPORT logistics, military, and the Baptist Health/Mayo cluster
• MCA in Tampa — Port Tampa Bay, MacDill AFB (CENTCOM/SOCOM), Ybor City hospitality, and BayCare healthcare