Brokering to Texas merchants? HB 700 registration is required by December 31, 2026. See the full state tracker →
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Deadline Guide · Reviewed August 2026

Texas MCA Broker Registration: What HB 700 Requires Before December 31, 2026

Texas is the first state to put a hard registration deadline on commercial sales-based financing brokers — not just funders. If you broker deals to Texas merchants, this applies to you regardless of where your office is.

By Elite Funders Editorial Team Published: August 2026 Updated: August 2026
Sept. 1, 2025
HB 700 (Fin. Code ch. 398) took effect
Sept. 1, 2026
NMLS registration applications open (OCCC)
Dec. 31, 2026
Registration required — … left
$10,000
Civil penalty, per violation
The short answer

Yes — brokers must register, and the window opens in weeks

Texas HB 700 added Chapter 398 to the Finance Code, effective September 1, 2025. It regulates commercial sales-based financing — the product family that includes merchant cash advances — for covered transactions under $1 million, and it reaches two groups: the companies that fund the deals, and the companies that broker them. The Office of Consumer Credit Commissioner (OCCC) administers it, and its guidance is direct: registration applications open through NMLS on September 1, 2026, and covered providers and brokers must be registered by December 31, 2026, with annual renewal after that.

That makes Texas the fourth state with a broker-registration regime (after Virginia, Connecticut, and Missouri) — but the first with a single, hard, well-publicized deadline attached to a $10,000-per-violation penalty. Most one- and two-person shops brokering Texas files have never registered with a financial regulator before. The window between now and year-end is when that changes.

Who should act

If Texas merchants are in your pipeline — even occasionally, even as an out-of-state broker — review the registration requirement with counsel now. Coverage follows the transaction, not your office address. If you never touch Texas files, you still need disclosure-law awareness in nine other states: see the full state tracker.

Beyond registration

What else Chapter 398 changes

RequirementWhat it means for a broker
Written disclosuresCovered offers must carry written disclosures: total financing amount, disbursement amount, finance charge, total repayment, payment amounts and period, fees, and collateral — with the recipient's signature. No APR mandate (Texas differs from California here).
Registration (providers + brokers)Through NMLS with the OCCC. Applications open Sept. 1, 2026; required by Dec. 31, 2026; renewed annually.
Collection mechanicsAutomatic-debit collection is conditioned on holding a first-priority perfected security interest — an operationally significant constraint for sales-based financing structures. Contract templates need counsel review.
PenaltiesCivil penalties up to $10,000 per violation; no private right of action — the state enforces.
Rules are still being finalized. The OCCC has been running formal rulemaking through 2026 (Texas Administrative Code Title 7, Ch. 86, Subch. C). Details of the registration process can still shift — check the OCCC's Commercial Sales-Based Finance page before filing, and treat this guide as orientation, not legal advice.
The checklist

What a broker should do, in order

01

Confirm you're covered

Do you broker commercial sales-based financing to Texas merchants under $1M? If yes, assume coverage until counsel says otherwise. Exemptions exist (banks and their subsidiaries, certain de-minimis activity) but are narrower than most brokers expect.

02

Get an NMLS account ready

Registration runs through NMLS — the same system mortgage originators use. If you've never used it, set up your company account ahead of the September 1 opening rather than learning the system in December.

03

File after September 1 — don't wait for December

Every registration regime has a year-end crunch. Filing early leaves time to fix deficiencies before the deadline has teeth.

04

Update your Texas disclosure packet

Confirm the funders you work with are generating compliant Chapter 398 disclosures on Texas files, and that signed copies come back before funding.

05

Calendar the renewal

Registrations renew annually. Put it on the compliance calendar the day the first registration is approved.

Send Texas files through a desk that's on top of this

Elite Funders tracks state requirements across the network so partner files move without compliance surprises. One submission, multiple funding partners, terms in writing.

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Questions

Texas HB 700 FAQs

Do MCA brokers have to register in Texas?
Yes. Chapter 398 reaches both providers and brokers of covered commercial sales-based financing. The OCCC opens NMLS applications September 1, 2026, and registration is required by December 31, 2026.
I'm not in Texas — does it still apply?
Coverage turns on the transaction, not your office. Brokering covered financing to Texas merchants is the trigger. Out-of-state brokers with Texas deal flow should review the requirement with counsel.
What does registration cost?
Fee specifics are set through the OCCC's rulemaking — check the OCCC's Commercial Sales-Based Finance page for current fee and process details before filing.
What happens if I skip it?
Civil penalties run up to $10,000 per violation. There's no private right of action — enforcement belongs to the state — but for a broker, being unregistered after the deadline also makes you a liability to every funder you send Texas files to.
Does Texas require APR disclosure like California?
No. Texas uses a total-cost disclosure model (financing amount, finance charge, total repayment, payments, fees, collateral) and the statute expressly bars the Finance Commission from imposing a maximum APR. California's regime is APR-centered; the two states' packets are not interchangeable.

Research record — retrieved August 18, 2026

  1. Texas OCCC — Commercial Sales-Based Finance registration page (NMLS timing, who registers) — occc.texas.gov
  2. Texas HB 700 (89th Leg.), enrolled bill analysis — capitol.texas.gov
  3. OCCC rulemaking record, 7 TAC Ch. 86 Subch. C (Nov 2025 – Mar 2026 drafts) — occc.texas.gov
  4. Holland & Knight — Texas commercial sales-based financing alert (June 2025) — hklaw.com
  5. Alston & Bird Consumer Finance — HB 700 analysis — alstonconsumerfinance.com

Educational information, not legal advice. Registration mechanics are subject to OCCC rulemaking; verify current requirements with the OCCC and qualified counsel.