House Bill No. by Representative McFarland proposes the enactment of 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 such transactions, whether categorized as fees or discounts, do not constitute interest.

Additionally, the bill mandates that revenue-based financing transactions include a written disclosure of specific terms at or before the transaction's consummation. This disclosure must detail the total funds provided, any deductions, the total amount to be paid to the provider, the total dollar cost, payment frequency and amounts, and any costs associated with prepayment. The legislation aims to enhance transparency and protect commercial enterprises engaging in these financing arrangements.