What legislation was passed in Missouri?
Effective Friday, February 28, 2025, the Missouri Division of Finance requires commercial financing providers, like Forward Financing, to deliver certain disclosures on commercial financing transactions to small businesses in their state before entering into a revenue-based financing transaction. Because Forward provides this type of product, we must follow this law and provide each Missouri-based customer a disclosure form to further help them make an informed decision.
Additionally, ISOs must register with the Missouri Division of Finance and file surety bonds prior to brokering commercial financing transactions.
What will small business owners need to do?
Missouri requires funders like Forward to provide a disclosure form to any customer with a business address in the state.
Forward will provide every small business in Missouri with the disclosure form at the same time as the funding contract. In most cases, whether working with an ISO or directly with Forward, the customer will receive two separate emails simultaneously – one with the disclosure form and one with the contract.
What do ISOs need to know?
Disclosure Form
Most of the information on the Missouri disclosure form is also included on the front page of Forward’s contract. However, Forward must comply with state law and will automatically share the appropriate disclosure form with customers in addition to our contract via a separate email. Our ISOs should ensure they are familiar with this state-required form so they’re able to answer any questions customers might have.
Registration Requirement
The state of Missouri will require brokers, like our ISOs, to register with the Missouri Division of Finance and file surety bonds prior to brokering commercial financing transactions.
Non-compliance could result in fines and enforcement by the attorney general. Learn more about these new rules for brokers here. As always, ISOs should contact their own legal counsel for how laws impact them directly.
Who can I contact if I have questions?
ISOs are encouraged to contact their Account Manager with any questions regarding Forward’s change in processes related to this Missouri legislation. Further information on the new law can be found here.
Customers working with an ISO and funding with Forward for the first time are encouraged to contact their ISO with questions on any documentation requirements, including this disclosure form. Customers who are working directly with Forward Financing are welcome, as always, to reach out to their Account Executive with any questions or concerns.
Will other states be passing similar legislation?
While none of us know for sure what legislation will or will not be passed, we can share our steadfast commitment to delivering financial opportunity to small businesses and being transparent and ethical in doing so.
We are involved in these discussions and closely monitoring any legislation that could affect our customers and ISOs. We will keep ISOs informed as decisions are made and will help them navigate any changes to how they work with Forward and the customers we share.