What legislation was passed in Texas?
Effective September 1, 2025, Texas law will ban revenue-based financing providers from automatically debiting customer’s deposit accounts in most circumstances.
What do ISOs need to know?
This legislation places restrictions on some of the main actions that revenue-based providers must take to service their customers. In preparation for when the law goes into effect, the funders you work with may be weighing their options and deciding the best path forward for their company and customers. Possible decisions may include:
- Ceasing to fund in Texas
- Altering their operations to continue offering compliant revenue-based financing in Texas
- Offering an alternate product to customers in Texas
We encourage ISOs to contact your revenue-based financing providers to learn more about their plan for servicing your shared customers in Texas in September 2025 and beyond.
Forward will offer revenue-based financing in Texas up until September 1, 2025, at which point we will only offer our fixed-term, installment-based loan product to new and renewal customers in the state. ISOs can offer our loan product by signing an amendment to your existing ISO agreement (no need to register). We are committed to partnering with our ISOs to ensure seamless servicing of our valued Texas customers; stay tuned for more details!
What will small business owners need to do?
Before September 1, small business owners in Texas may continue working with their financing providers as usual. Any revenue-based financing agreements they enter into before September 1 should operate like normal and as expected for the life of the financing agreement.
On September 1 and beyond, small business owners in Texas should be sure to educate themselves about the options available to them and the differences between them, which is always good practice. Their ISOs and the direct funders can be resources to understand what financing products are available to them.
Who can I contact if I have questions?
Further information about this legislation can be found here.
For more information on how you can work with Forward to continue servicing our shared customers in Texas, please contact your dedicated Forward Account Manager.
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.