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MCA Laws in Florida: What Business Owners Need to Know

MCA Laws in Florida: What Business Owners Need to Know

Bar Alezrah
9 min read
March 27, 2026
Reviewed for accuracy. Based on real experience.

Florida is one of the largest MCA markets in the country. The state's massive small business population, combined with limited state-level MCA regulation, has made it a prime target for MCA funders. both reputable ones and predatory ones. If you are a Florida business owner, understanding what protections exist (and where the gaps are) is essential.

This guide covers the current state of MCA law in Florida and what you can do to protect yourself.

Current MCA Regulations in Florida

Florida does not have any laws specifically regulating merchant cash advances. Like many states, Florida treats MCAs as commercial transactions (purchases of future receivables) rather than loans. This classification means MCAs fall outside the Florida Consumer Finance Act and the Florida Uniform Consumer Credit Code.

The practical result is:

  • MCA companies do not need a Florida lending license to offer MCAs
  • Florida's usury statute (which limits interest to 18% for loans under $500,000) does not apply
  • There are no state-mandated disclosure requirements for MCAs
  • The Florida Office of Financial Regulation (OFR) does not directly oversee MCA transactions

Florida's regulatory approach to MCAs is similar to Texas. business-friendly and hands-off. This is not unusual, but it means Florida business owners need to be more cautious and self-informed.

Confession of Judgment Rules

Florida law does not expressly prohibit confessions of judgment, but Florida courts have traditionally been skeptical of them. Under Florida common law:

  • COJs are not favored and are subject to strict scrutiny by courts
  • Florida courts require that COJs be clearly and voluntarily entered into with full knowledge of the consequences
  • Courts will examine whether the debtor had adequate legal representation and understood the waiver of rights
  • Florida courts have invalidated COJs where there was evidence of unequal bargaining power or lack of understanding

While this is not an outright ban like Texas, Florida courts provide more protection than some other states. If an MCA company obtained a COJ judgment against you in New York, enforcing it in Florida would require domesticating the judgment through Florida courts, which gives you an opportunity to challenge it.

If an MCA company is threatening you with a COJ, consult a Florida attorney. You have more protection than you might think.

UCC Filing Rules

MCA companies file UCC-1 financing statements with the Florida Department of State, Division of Corporations. These filings are standard and create a public lien on your business receivables.

Key information for Florida business owners:

  • Search for UCC filings through the Florida Department of State Sunbiz portal
  • Florida UCC filings are effective for five years
  • After you satisfy an MCA obligation, the funder must file a termination statement within 20 days of receiving your authenticated demand
  • Under Florida's version of UCC Article 9, you can recover damages if a funder wrongfully refuses to terminate a filing
  • Check for filings regularly, especially before applying for traditional financing

Consumer Protection Laws That Apply

Florida Deceptive and Unfair Trade Practices Act (FDUTPA)

FDUTPA (Florida Statutes Chapter 501) is Florida's primary consumer protection law, and it applies to business-to-business transactions. This law prohibits unfair or deceptive acts or practices in trade or commerce.

If an MCA company engaged in deceptive conduct. such as misrepresenting the cost of the MCA, hiding fees, or making false promises about reconciliation. FDUTPA may provide a legal remedy. Successful claims can result in:

  • Actual damages
  • Attorney fees and court costs
  • Injunctive relief (a court order stopping the deceptive practice)

Florida RICO Statute

In extreme cases involving patterns of fraud or criminal activity, Florida's Civil Remedies for Criminal Practices Act (Florida's version of RICO) can be used against MCA companies engaged in systematic predatory behavior. This is a more aggressive legal tool but has been used in severe cases.

Recent Developments

Florida has not passed MCA-specific legislation, but several developments are worth noting:

  • Growing legislative interest. Florida lawmakers have begun discussing the need for commercial financing disclosure requirements similar to California's SB 1235 and New York's disclosure law. No bill has passed yet, but the conversation is underway.
  • Federal pressure. The FTC and Consumer Financial Protection Bureau (CFPB) have increased their focus on commercial financing practices, which impacts MCA companies operating in Florida.
  • Attorney General complaints. The Florida Attorney General's office has received an increasing number of complaints related to MCA practices, particularly regarding aggressive collection tactics and misleading terms.
  • Court precedents. Florida courts have increasingly scrutinized MCA agreements, with some judges questioning whether certain MCAs with fixed payments are actually loans subject to usury limits.

What Florida Business Owners Should Do

Given the limited regulatory protections in Florida, you need to take proactive steps:

  1. Ask for full cost disclosure. Even though it is not legally required in Florida, ask the MCA company for the total payback amount, the payment schedule, and the effective APR. If they will not provide this information, find another funder.
  2. Read every page of the agreement. Pay special attention to the personal guarantee, the confession of judgment clause (if present), the default provisions, and the choice-of-law clause.
  3. Avoid MCA stacking. Without regulatory guardrails, it is easy to take on multiple MCAs that create unsustainable daily payment obligations. Before taking a second MCA, get professional financial advice.
  4. Check your UCC filings. Search the Florida Sunbiz portal regularly to know what liens exist against your business.
  5. Keep detailed payment records. If the MCA company is taking fixed daily payments without any reconciliation based on your actual revenue, document this. It could support an argument that the MCA is actually a loan.
  6. Know your rights under FDUTPA. If an MCA company made false or misleading representations, you may have legal options. Consult an attorney.

Helpful Resources

Frequently Asked Questions

Does Florida regulate merchant cash advances?

No. Florida does not have any laws specifically regulating MCAs. They are treated as commercial transactions, not loans, so they fall outside lending regulations, usury limits, and licensing requirements. General contract law and the Florida Deceptive and Unfair Trade Practices Act still apply.

Can an MCA company file a confession of judgment in Florida?

Florida does not expressly ban confessions of judgment, but Florida courts are skeptical of them and apply strict scrutiny. COJs must be clearly voluntary and entered into with full understanding. If a COJ judgment was obtained in another state, Florida courts provide an opportunity to challenge it before enforcement.

What is the interest rate limit for MCAs in Florida?

Florida's usury statute does not apply to MCAs because they are not classified as loans. There is no interest rate cap on MCAs in Florida. However, if a court determines that a specific MCA is actually a loan, Florida's usury limits could apply.

Where can I get help with an MCA dispute in Florida?

Contact a Florida business attorney who handles commercial financing disputes. You can also file a complaint with the Florida Attorney General at myfloridalegal.com. The Florida Small Business Development Centers at floridasbdc.org offer free counseling that can help you understand your options.

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