(a)Before, or at the time of, consummating a commercial financing transaction, a provider shall disclose to the business the terms of such commercial financing transaction in accordance with the provisions of this section. Only one disclosure shall be required for each commercial financing transaction and disclosure shall not be required when modification, forbearance or change to a consummated commercial financing transaction occurs.
(b)A provider shall disclose with each commercial financing transaction:
(1)The total amount of funds provided to the business under the terms of such commercial financing transaction. Such disclosure shall be labeled "total amount of funds provided";
(2)the total amount of funds disbursed to such business under the terms of such commercial financing tran
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(a) Before, or at the time of, consummating a commercial financing transaction, a provider shall disclose to the business the terms of such commercial financing transaction in accordance with the provisions of this section. Only one disclosure shall be required for each commercial financing transaction and disclosure shall not be required when modification, forbearance or change to a consummated commercial financing transaction occurs.
(b) A provider shall disclose with each commercial financing transaction:
(1) The total amount of funds provided to the business under the terms of such commercial financing transaction. Such disclosure shall be labeled "total amount of funds provided";
(2) the total amount of funds disbursed to such business under the terms of such commercial financing transaction if less than the total amount of funds provided under paragraph (1). Such disclosure shall be labeled "total amount of funds disbursed";
(3) the total amount to be paid to such provider pursuant to such commercial financing transaction agreement. Such disclosure shall be labeled "total of payments";
(4) the total dollar cost of such commercial financing transaction under the terms of the agreement, which shall be determined by subtracting the total amount of funds provided from the total of payments. Such calculation shall include any fees or charges deducted by the provider from the amount under paragraph (1). Such disclosure shall be labeled "total dollar cost of financing";
(5) the manner, frequency and amount of each payment. Such disclosure shall be labeled "payments". If such payments vary, the provider shall instead disclose the manner, frequency and the estimated amount of the initial payment and shall label such disclosure as "estimated payments." The commercial financing transaction agreement shall include a description of the methodology for calculating any variable payment and the circumstances for when payments may vary; and
(6) a statement of whether there are any costs or discounts associated with prepayment of such commercial financing transaction, including a reference to the paragraph in such agreement that creates the contractual right to prepayment. Such disclosure shall be labeled "prepayment".
(c) A provider that consummates a commercial financing facility may provide disclosures required by this act that are based on an example of a transaction that could occur under the agreement. The example shall be based on an account receivable total face amount owed of $10,000. Only one disclosure is required for each commercial financing facility, and a disclosure is not required as result of a modification, forbearance or change to the facility. A new disclosure is not required each time accounts receivables are purchased under the facility.