MCA Disclosure Laws

**Kansas** {#kansas}

Where We Are Currently

Effective **July 1, 2024**, Kansas’ Senate Bill 345 (the “Kansas Commercial Financing Disclosure Act”) requires providers of commercial-financing transactions of **$500,000 or less** — including loans, commercial open-end credit plans, and accounts-receivable purchase transactions — to deliver prescribed disclosures before or at consummation. The law also prohibits brokers from charging advance fees and engaging in misleading conduct, exempts depository institutions and transactions over $500,000, and gives enforcement authority exclusively to the Kansas Attorney General. [mayerbrown.com](https://www.mayerbrown.com/en/pdf/insights/publications/2024/06/kansas-enacts-commercial-finance-disclosure-law?utm_source=chatgpt.com)

How We Got Here

SB 345 was enacted April 12, 2024, with an effective date of July 1, 2024. (Venable)

What Funders Need to Know

Subject

Covers providers of commercial financing, including A/R purchase transactions and facilities. ([Mayer Brown](https://www.gtlaw.com/en/insights/2024/9/new-commercial-financing-laws-take-effect-in-connecticut-kansas?utm_source=chatgpt.com))

Exemptions

Statutory exemptions apply; the Act generally covers commercial loans, open-end credit, and A/R purchase transactions up to $500,000, with facility examples provided.

Compliance Requirement

SB 345 does not create a separate state license; it requires providers (more than five transactions/year) to furnish disclosures and comply with timing/content. [Consumer Finance and Fintech Blog](https://www.consumerfinanceandfintechblog.com/2024/04/kansas-introduces-new-commercial-financing-disclosure-law/?utm_source=chatgpt.com)

Disclosure Requirements

Core cost and repayment elements must be disclosed before or at consummation; statute and commentary include facility/A-R illustrations. (Venable)

Other Rules (optional)

The Act includes product-specific variants, including disclosures for facilities using a $10,000 A/R example. [Mayer Brown](https://www.mayerbrown.com/en/insights/publications/2024/06/kansas-enacts-commercial-finance-disclosure-law?utm_source=chatgpt.com)

Penalties

Civil penalties are authorized and enforcement is by the Kansas Attorney General. [Kansas Secretary of State](https://www.sos.ks.gov/publications/sessionlaws/2024/Chapter-29-SB-345.html?utm_source=chatgpt.com)

Official Documents (links)

Kansas Commercial Financing Disclosure Act (SB 345) – summary. ([Mayer Brown](https://www.gtlaw.com/en/insights/2024/9/new-commercial-financing-laws-take-effect-in-connecticut-kansas?utm_source=chatgpt.com))

Expert Opinions and Analysis (links)

Kansas Enacts Commercial Financing Disclosure Law (effective 7/1/2024). (Venable) New Commercial Financing Laws in Connecticut and Kansas. ([Mayer Brown](https://www.gtlaw.com/en/insights/2024/9/new-commercial-financing-laws-take-effect-in-connecticut-kansas?utm_source=chatgpt.com))

Operator Checklist

• Confirm whether the transaction is a loan, open-end credit, A/R purchase, or facility and select the right form. ([Mayer Brown](https://www.gtlaw.com/en/insights/2024/9/new-commercial-financing-laws-take-effect-in-connecticut-kansas?utm_source=chatgpt.com))

• Present core cost/repayment items at the required time (pre-consummation or at consummation). (Venable)

• If using a facility, mirror the statute’s A/R example structure in your disclosure. ([Mayer Brown](https://www.gtlaw.com/en/insights/2024/9/new-commercial-financing-laws-take-effect-in-connecticut-kansas?utm_source=chatgpt.com))

• Retain disclosure copies and delivery proofs.