Federal Truth in Lending rules do not cover business credit, and several states have written their own disclosure laws for commercial financing. Before you sign a covered deal, the provider must give you a standard form with items such as the funding you will receive, the total cost, the payment amount and frequency, the term and any prepayment rules.
The details vary by state. New York covers offers up to $2.5 million and requires an APR, labeled an estimated APR for sales-based financing. California's rules took effect on December 9, 2022, and also require an APR. Several other states, including Florida and Georgia, require the total dollar cost instead of an APR.
Openbook Capital shows the full cost and an estimated APR on every offer, whether or not your state requires them. The state law pages cover each state's rules. This is general information, not legal advice.
Sources
- 12 CFR 1026.3 Exempt transactions (Regulation Z) — Consumer Financial Protection Bureau (checked 2026-09-30)
- Superintendent Adrienne A. Harris Adopts Updated Regulation For Disclosure Requirements For Commercial Financing (Feb. 1, 2023) — New York State Department of Financial Services (checked 2026-09-30)
- 23 NYCRR Part 600: Commercial finance disclosure regulation (text) — New York State Department of Financial Services (checked 2026-09-30)
- DFPI's Commercial Financing Disclosure Regulations Approved to Become Effective as of December 9, 2022 — California Department of Financial Protection and Innovation (checked 2026-09-30)
- State Survey of the Standard Commercial Financing Disclosure Laws (The Business Lawyer, Spring 2025) — American Bar Association (checked 2026-09-30)