Utah Commercial Financing Disclosure
Utah's Commercial Financing Disclosure Act (effective 2023) requires commercial financing providers including MCA funders to register with the Utah Department of Financial Institutions and provide standardized cost disclosures to Utah-located merchants.
Why This Matters
Utah's CFDA includes both disclosure requirements and registration requirements — funders must register with the state before originating commercial finance to Utah merchants. The dual-requirement structure (registration + disclosure) creates more substantial compliance burden than disclosure-only laws. Utah's approach has influenced subsequent state legislative drafting in Georgia, Connecticut, and pending bills in additional states. The trend toward registration requirements adds operational complexity beyond pure disclosure compliance.
Frequently Asked Questions
Frequently Asked Questions
Does Utah's commercial finance law require funder registration?
Yes — funders must register with Utah Department of Financial Institutions before originating commercial finance to Utah merchants. This dual disclosure-and-registration structure is more burdensome than disclosure-only state laws like New York's CFDL.
What's the trend in state commercial finance regulation?
Increasing adoption of disclosure-and-registration frameworks similar to Utah's, growing alignment of disclosure formats and APR calculation methodologies across states, expansion of regulated transaction types beyond traditional MCA to include other commercial finance products, and growing CFPB engagement with state-level enforcement.