Connecticut SB 1032 and Sales-Based Financing

Connecticut requires sales-based financing providers and brokers to register with the Department of Banking and to provide standardized disclosures for covered transactions.

The framework closely tracks Virginia's, reflecting a converging national template.

Funds provided and disbursed, total repayment, total dollar cost, estimated APR, payment amount and frequency, estimated term, and reconciliation description.

Six states with substantively similar requirements is effectively a national standard for any funder operating in more than one market. We prepare the same disclosure package for every applicant rather than maintaining separate practices by state.

For merchants, the practical takeaway is simple: if a funder can only produce a cost sheet in regulated states, that tells you what their default posture is.