TX HB700

Requires providers of commercial sales-based financing under $1 million to disclose key terms to recipients, including total financing amount, disbursement amount, finance charges, total repayment amount, payment schedules, fees, collateral requirements, and broker compensation

Mandates registration with the Office of Consumer Credit Commissioner for all commercial sales-based financing providers and brokers before conducting business in Texas, with annual renewal required by January 31 each year

Exempts banks, credit unions, their subsidiaries/affiliates, Farm Credit Act lenders, and transactions involving real property, leases, or financing of $50,000+ for auto dealers/rental companies

Voids and makes unenforceable any commercial sales-based financing contracts containing confession of judgment provisions, and prohibits automatic debiting of recipient accounts unless the provider holds a first-priority perfected security interest

Establishes $10,000 civil penalty per violation enforced by the Office of Consumer Credit Commissioner, with no private right of action; existing providers/brokers must register by December 31, 2026, with rules to be adopted by September 1, 2026