State Disclosure forms for MCA providers and ISO’s and how to request a template

In the complex world of financial services, transparency and compliance are paramount. This is especially true for Merchant Cash Advance (MCA) providers and Independent Sales Organizations (ISOs), who operate in a dynamic and highly regulated industry. One of the fundamental tools that contribute to transparency and compliance is the State Disclosure form. In this article, we will delve into what is Disclosure form, their significance, key components, and how MCA providers and ISOs can request and customize these templates to meet their specific needs while adhering to state regulations.

Understanding Disclosure Forms

State Disclosure forms, often referred to as disclosure statements, are an essential aspect of MCA and ISO operations. These documents play a critical role in providing transparency to merchants, ensuring compliance with legal requirements, and establishing a clear record of the financial transaction. Let’s dissect the significance of them.


Transparency is the cornerstone of ethical business practices. Disclosure forms offer MCA providers and ISOs an opportunity to communicate all the pertinent details of a financial agreement with merchants. This includes all aspects of the deal, such as the financing amount, fees, interest rates, and repayment terms. This level of transparency builds trust and helps merchants make informed decisions.


In the financial services sector, compliance with the law is non-negotiable. Disclosure forms are not only a good business practice but are often a legal requirement. Regulatory bodies, such as state authorities and the Federal Trade Commission (FTC), mandate these disclosures to protect merchants and maintain the integrity of the financial industry.

Legal Requirements

The legal requirements for Disclosure forms can vary from state to state. Therefore, it’s essential for MCA providers and ISOs to familiarize themselves with their specific state regulations. Understanding and adhering to these laws is crucial to avoid costly penalties and maintain a good reputation in the business.

Key Components of Disclosure Forms

State Disclosure forms are not one-size-fits-all; they need to be tailored to the specifics of each financing agreement. However, there are common key components that you should always include:

  1. Interest Rates: Clearly state the interest rates associated with the financing. This can be a fixed rate or a variable rate, depending on the agreement.
  2. Fees and Charges: List all fees and charges that the merchant will be responsible for. This may include origination fees, underwriting fees, and any other applicable charges.
  3. Repayment Terms: Define the repayment terms, such as the duration of the financing agreement and the frequency of payments. Specify if it’s daily, weekly, or monthly.
  4. Total Repayment Amount: Provide a breakdown of the total repayment amount, including the principal amount and the total cost of the financing.
  5. APR (Annual Percentage Rate): Calculate and disclose the Annual Percentage Rate, which provides merchants with a clear understanding of the overall cost of the financing.
  6. Other Relevant Terms and Conditions: Any other terms and conditions that are relevant to the agreement should be included. This might involve the consequences of early repayment, late payments, or defaults.

Adhering to these key components is vital to ensure that your State Disclosure forms are comprehensive and informative. However, remember that state regulations may also dictate additional elements that must be included, so always research your specific state’s requirements.

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How to Request a State Disclosure Form Template

Once you understand the importance of Disclosure forms and their key components, the next step is to obtain a template. Here are some methods to consider:

Contacting Regulatory Authorities

One option is to contact the relevant regulatory authorities in your state. These agencies often provide resources and templates to assist businesses in complying with state regulations. Reach out to them and inquire about available guidance or samples of disclosure statements.

Online Resources and Templates

The internet is a valuable resource for finding disclosure statement examples. Numerous websites and platforms offer customizable templates tailored to various requirements. Make sure to choose a template that aligns with your state’s regulations.

Legal Counsel Assistance

For a more personalized approach, consider seeking legal counsel. Legal professionals with expertise in financial services can help you create documents that are not only compliant but also tailored to your specific business needs. This ensures that your forms are legally sound and in the best interest of both parties.

Customizing template involves filling in the relevant information specific to your MCA or ISO operation. While doing this, it’s crucial to ensure that all mandatory elements are included and comply with state laws. Customization should not compromise transparency or compliance.

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Submission and Record-keeping

Once you have created a customized Disclosure form, it’s important to understand where and how to submit it and the importance of maintaining records.


State regulations typically dictate where these forms should be submitted. It’s essential to follow the prescribed submission process to avoid any legal complications. Common submission methods may include filing with state authorities or providing a copy to the merchant.


Maintaining thorough records of all Disclosure forms is not only good practice but often a legal requirement. These records serve as evidence of your compliance with state regulations and can be invaluable in the event of any disputes or audits. It’s advisable to retain both digital and hard copies of these documents for an extended period.

In conclusion, Disclosure forms are a crucial component of MCA and ISO operations. They contribute to transparency, compliance, and legal adherence, all of which are essential in the financial services industry. By understanding their significance and the key components that should be included, MCA providers and ISOs can operate ethically and within the bounds of the law. Obtaining a template for these forms can be done through various means, such as contacting regulatory authorities, using online resources, or seeking legal counsel. Customizing these templates is essential to align them with your business needs while maintaining compliance. Lastly, proper submission and record-keeping practices are necessary to complete the process. By following these steps, MCA providers and ISOs can ensure a transparent and compliant financial operation that benefits all parties involved.