undefined
Skip to main content
Global Site|en

Add a bookmark to get started

Global Site
Africa
MoroccoEnglish
South AfricaEnglish
Asia Pacific
AustraliaEnglish
Hong Kong SAR ChinaEnglish简体中文
KoreaEnglish
New ZealandEnglish
SingaporeEnglish
ThailandEnglish
Europe
BelgiumEnglish
Czech RepublicEnglish
HungaryEnglish
IrelandEnglish
LuxembourgEnglish
NetherlandsEnglish
PolandEnglish
PortugalEnglish
RomaniaEnglish
Slovak RepublicEnglish
United KingdomEnglish
Middle East
BahrainEnglish
QatarEnglish
North America
Puerto RicoEnglish
United StatesEnglish
OtherForMigration
Bank teller window
21 June 20232 minute read

More states set to require commercial financing disclosures

Following the adoption of laws in California, New York, Utah, and Virginia, more states are set to require a broad class of commercial financing providers to make TILA-like disclosures in connection with various types of commercial financing transactions, including purchases of accounts receivable. TILA is the federal Truth in Lending Act.

We encourage any businesses impacted by these regulations to contact us should they need assistance determining whether the laws and regulations apply to their business, drafting disclosures that meet these state requirements, and/or navigating the application and registration processes.

Georgia (law enacted, effective January 2, 2024)

Georgia recently passed a law, effective January 1, 2024, that applies to any “commercial financing transaction,” defined to include any commercial loan, commercial open-end credit plan, and accounts receivable purchase transaction, in an amount of $500,000 or less. The disclosure requirements require providers to disclose items such as the total amount of funds provided to the borrower and the cost of credit, but allow for greater flexibility than California and New York in terms of form and presentation of the disclosures. Notably, the Georgia law does not require providers to disclose an APR.
Georgia’s law excludes any person that makes five or fewer commercial financing transactions with Georgia customers in a calendar year.

Florida (legislation that if signed by governor or not vetoed becomes effective July 1, 2023)

The Florida legislature passed legislation this month that would become effective on July 1, 2023 if Governor Ron DeSantis signs or fails to veto it. The law would apply to any “commercial financing transaction,” defined to include any commercial loan, commercial open-end credit plan, and accounts receivable purchase transaction, in an amount of $500,000 or less. Any person who makes five or fewer commercial financing transactions with Florida customers in a calendar year is excluded.

Connecticut (legislation that if signed by governor becomes effective July 1, 2024)

A commercial financing disclosure law, which would become effective July 1, 2024, passed both houses of the Connecticut legislature on June 7 and is awaiting Governor Ned Lamont’s signature. The Connecticut law applies only to extensions of sales-based financing in an amount of $250,000 or less. The Connecticut law is only triggered if a person engages in more than five commercial financing transactions with Connecticut customers in a 12-month period. Connecticut does not require an APR disclosure.