Last week there was a bill in the Maryland legislature about Senate Bill 509, which is a commercial financing bill that has disclosure requirements that can be seen as unfavorable to the RBF industry.
In North Carolina, there are two bills, House Bill 662 and its companion, Senate Bill 539, making its way through the legislative process. Here are some details on the Disclosure requirements in bill 539:
"Mandates that a prover give 10 described disclosures to a recipient at the time of extending a specific offer of sales-based financing, defined as a type of financing in which the recipient's repayment is based on the recipient's volume of sales or revenue, including (1) the total amount of the commercial financing; (2) the finance charge; (3) the estimated annual percentage rate; and (4) the total repayment amount, or the disbursement amount plus the finance charge. Details two methods, the historical method and the opt-in method, for the provider to calculate the recipient's projected sales volume, of which the provider must elect one to use for all of its sales-based financing and notify the Commissioner of Banks (Commissioner) of its election. "
