House Bill No. [insert number] enacts R.S. 9:3137.10, which establishes regulations for revenue-based financing transactions in Louisiana. The bill defines a revenue-based financing transaction as an agreement where a commercial enterprise sells or agrees to forward a percentage of its sales, revenue, or income, with payment obligations that fluctuate based on sales volume. It clarifies that amounts charged in these transactions, whether categorized as fees or discounts, do not constitute interest.

Additionally, the bill mandates that a written disclosure of the transaction's terms must be provided to the commercial enterprise at or before the transaction's completion. This disclosure must include specific information such as the total funds provided, any deductions made, the total amount to be repaid, the overall cost of the agreement, payment details, and any prepayment costs or discounts. Only one disclosure is required per transaction, and no additional disclosures are necessary for modifications or changes to an already consummated transaction.