The Legal Ground You’re Standing On
Kansas MCA law: the three facts that shape every option
Every resolution strategy — renegotiation, settlement, defense, refinancing — plays out differently depending on these three pieces of Kansas law. A firm that can’t speak to them isn’t the best firm for a Kansas file.
1Usury limits & the recharacterization question
Kansas's general usury cap (15% under K.S.A. § 16-207) expressly does not apply to business or agricultural transactions — credit extended primarily for other than personal, family, or household purposes. Since MCAs are business-purpose by definition, even a recharacterized advance would generally sit outside the ceiling, making usury a weak defense in Kansas. What Kansas merchants have instead is one of the country's eleven commercial financing disclosure laws: the 2024 Commercial Financing Disclosure Act, which reaches MCAs directly regardless of the loan-versus-sale question.
Sources: K.S.A. § 16-207 (rates; business exemption)
2Confessions of judgment in Kansas
No Kansas entry mechanism Kansas civil procedure contains no statute authorizing judgment by confession on a pre-signed warrant of attorney — chapter 60 has no confession provision, and K.S.A. 60-2611, sometimes miscited as one, is actually a check-collection fee statute. In consumer credit, pre-dispute confessions are affirmatively void (K.S.A. § 16a-3-306). MCA confession paperwork therefore has no Kansas entry route; the practical risk is a confession entered in another state arriving by domestication under full faith and credit.
Sources: K.S.A. § 16a-3-306 (consumer confessions void) · K.S.A. ch. 60 (no confession-of-judgment statute)
3Kansas Commercial Financing Disclosure Act (SB 345): what funders must tell you
Enacted April 2024 and in force since mid-2024 (K.S.A. §§ 75-783 to 75-787), the Act covers commercial financing of $500,000 or less — including accounts receivable purchase transactions, the MCA structure — by providers doing more than five Kansas transactions a year. Required disclosures at or before consummation: total funds provided, funds disbursed if less, total to be repaid, total dollar cost, payment manner/frequency/amount, and prepayment costs or discounts (no APR). Brokers are barred from charging advance fees; there is no registration requirement. The Kansas Attorney General has exclusive enforcement authority ($500 per violation up to $20,000, more after notice); no private right of action. If a funder gave you no cost disclosure on a covered post-2024 advance, that is a compliance failure worth raising.
Sources: K.S.A. § 75-783 (definitions; act name) · K.S.A. § 75-784 (required disclosures) · 2024 Session Laws ch. 29 (SB 345)
How funders actually enforce here: Out-of-state judgments — including confessions entered elsewhere — domesticate under Kansas's UEFJA (K.S.A. §§ 60-3001 to -3008) and enforce like district court judgments. Business bank accounts and receivables are reachable through non-wage garnishment without the percentage limits that protect individual wages (§ 60-2310). Funders file UCC-1 liens with the Kansas Secretary of State, the single statewide Article 9 repository. No published Kansas MCA decision could be verified — recharacterization law here is undeveloped. K.S.A. § 60-3002 (foreign judgment filing) · Kansas Secretary of State — UCC filings and search
