Merchant Cash Advance in Kansas: 2026 Guide to the Disclosure Act, Costs & Lenders

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.