Merchant Cash Advance in Louisiana: 2026 Guide to Act 198, Costs & Lenders

Quick Answer: Louisiana enacted Act 198 (House Bill 470), effective August 1, 2025, requiring providers of revenue-based financing — a definition that captures merchant cash advances — to give Louisiana businesses written disclosures before the deal is finalized, including total funds provided, total amount to be paid, total dollar cost, and payment frequency. Louisiana’s law is the first state commercial financing disclosure statute with no dollar-amount cap and no entity exemptions, so it applies regardless of advance size. It does not require a standard APR, so you should still calculate it yourself. Louisiana does not cap MCA rates; factor rates of 1.15 to 1.50 (roughly 40–200% APR) are legal as long as the dollar terms are disclosed. With about 470,000 small businesses, Louisiana’s energy, tourism, seafood, and port-logistics sectors are the heaviest MCA users. Request the written Act 198 disclosure before signing, and use the MCA calculator to convert the numbers into an APR.

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Louisiana Act 198: What Changed on August 1, 2025

For years Louisiana had no statutory MCA disclosure requirement. That changed when the legislature passed HB 470, signed as Act 198 in 2025 and effective August 1, 2025. The law brings Louisiana into the group of states — California, New York, Virginia, Utah, Connecticut, Texas, Georgia, Florida, Kansas, and Missouri — that require some form of commercial financing disclosure.

Louisiana’s version has one distinctive feature: it is the first such law that does not exempt any types of entities or transactions and sets no maximum dollar amount. Most state disclosure laws stop applying above $500,000 or $1 million; Louisiana’s reaches revenue-based financing of every size.

What the Law Covers

Act 198 applies to “revenue-based financing transactions,” defined as an agreement under which a commercial enterprise sells or agrees to forward a percentage of its sales, revenue, or income, with the payment obligation rising and falling according to the volume of sales or revenue received. That definition is built to capture merchant cash advances. The law excludes traditional credit transactions such as loans.

Required Disclosures

Before the agreement is consummated, the provider must deliver written disclosures covering:

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
Annual-cost metric	An annualized cost figure (not a full DFPI-style APR)
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. Louisiana gives you the dollar figures and an annual-cost metric, but converting those into a comparable APR is still on you — the MCA calculator does this.

If a provider cannot produce a written Act 198 disclosure before you sign, they are either non-compliant or operating outside Louisiana law — either way, a reason to walk.

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Louisiana’s Small Business Market

Louisiana is home to roughly 470,000 small businesses — more than 99% of all businesses in the state — employing close to half the private-sector workforce. The economy’s energy, tourism, and maritime backbone shapes MCA demand.

Industries with the highest MCA demand in Louisiana:

Energy and petrochemical services — Service and supply companies along the Gulf Coast and the Baton Rouge–New Orleans industrial corridor face large upfront costs and 45–90 day invoice cycles from operators. MCAs bridge the gap while waiting on payment. Typical advance range: $50,000–$300,000.

Tourism and hospitality — New Orleans’ restaurants, hotels, music venues, and festival economy (Mardi Gras, Jazz Fest) generate dense card-volume businesses that fit the MCA profile, especially for seasonal and event-driven working capital. Typical advance range: $15,000–$150,000.

Seafood and commercial fishing — Shrimp, oyster, and crawfish operations along the coast use MCAs for seasonal equipment, crew, and fuel costs. Typical advance range: $20,000–$100,000.

Ports and logistics — Businesses tied to the Port of New Orleans, Port of South Louisiana (one of the largest tonnage ports in the country), and Baton Rouge handle lumpy invoice cycles between shipments. Typical advance range: $30,000–$200,000.

Construction and healthcare — Contractors bridging owner-payment gaps and independent practices bridging 30–90 day insurance reimbursements round out the heaviest MCA users. Typical advance range: $30,000–$250,000.

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What an MCA Costs a Louisiana Business: Real Numbers

Your Act 198 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 Act 198 does not require a standard APR, calculate it yourself from the disclosed dollar figures — the MCA calculator does this in seconds.

Factor rates for Louisiana 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 Louisiana Businesses

All providers in our directory fund Louisiana businesses. The ones most relevant to LA borrowers:

Provider	Min FICO	Min Monthly Revenue	Factor Rate Range	Best For
Kapitus	625+	~$20,800/mo	1.10–1.50	Large advances, established LA 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 LA businesses, same-day funding
Libertas Funding	600	$75,000/mo	1.10–1.35	High-revenue energy and port 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 Act 198-compliant offers at once

Before signing with anyone: confirm the provider can hand you a written, Act 198-compliant disclosure. A provider that can’t or won’t is either non-compliant or operating outside Louisiana law. Browse the full provider directory to compare terms.

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Five Things to Check Before Signing an MCA in Louisiana

1. Request the written Act 198 disclosure. You are entitled to written disclosure of total funds, total repayment, total dollar cost, the annual-cost metric, and payment frequency before signing. If a provider skips this, they are violating Louisiana law.

2. Calculate the APR yourself. Act 198 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 materials on what’s left.

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When an MCA Makes Sense for a Louisiana 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 — Louisiana 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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Louisiana City Guides

For city-level MCA coverage — including employer-specific industries, local SBDC contacts, and verified SBA addresses:

City	Guide
New Orleans	Merchant Cash Advance in New Orleans — tourism, Port of New Orleans, Ochsner Health
Baton Rouge	Merchant Cash Advance in Baton Rouge — ExxonMobil refinery, Turner Industries, Our Lady of the Lake, LSU

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Sources: Louisiana Act 198 / HB 470 (2025 Regular Session, Rep. McFarland), effective August 1, 2025 — Louisiana Legislature enrolled bill and Act 198 résumé digest (legis.la.gov); Mayer Brown, “Louisiana Now Requires Disclosures for Revenue-Based Financing Transactions” (August 2025); Manatt, “Texas and Louisiana Pass Revenue-Based Financing Disclosure Laws” (2025). No dollar cap / no entity exemption and dollar-cost-without-standard-APR framing per those client alerts. Louisiana small business statistics — U.S. SBA Office of Advocacy, Louisiana Small Business Profile. Provider data — individual provider disclosures, verified 2026.

This guide is general information, not legal advice. Consult a Louisiana attorney before signing any commercial financing agreement.