The bill establishes new disclosure requirements for providers of commercial financing in New Jersey, aimed at enhancing transparency for recipients. It defines key terms such as "broker," "closed-end financing," and "finance charge," and mandates that providers disclose essential information at the time of extending financing offers. This includes the total amount of financing, finance charges, estimated annual percentage rates (APR), total repayment amounts, and any additional fees or collateral requirements. Providers must calculate and disclose the estimated APR based on historical sales data or projected sales volume, with oversight from the Commissioner of Banking and Insurance. The bill also allows for regulatory adjustments if discrepancies are found between disclosed rates and actual rates.

Additionally, the bill requires providers to obtain a written or electronic signature from recipients on all required disclosures before proceeding with a financing application, although this is not necessary if the transaction is not consummated. It outlines conditions under which providers can avoid liability for disclosure errors and specifies penalties for violations. The bill includes exemptions for certain financial institutions and transactions over $500,000, and it will take effect 180 days after enactment, with a compliance grace period of 120 days following the adoption of final regulations by the commissioner. Overall, the legislation aims to ensure that recipients are well-informed about the terms and costs associated with their financing options.