This bill establishes new disclosure requirements for providers of commercial financing in New Jersey, aiming to enhance transparency and protect recipients. It defines key terms such as "broker," "commercial financing," and "finance charge," and mandates that providers disclose essential information at the time of extending financing offers. Required disclosures include the total amount of financing, finance charges, estimated annual percentage rates (APR), total payment amounts, payment schedules, and any additional fees or collateral requirements. The bill also specifies that brokers must separately disclose any fees or commissions they charge, ensuring clarity in the financing process.

Significantly, the bill removes the option for providers to disclose the estimated yearly total dollar cost instead of the APR for factoring and sales-based financing transactions. It expands the definition of commercial financing to include finance leases, which will now be subject to the same disclosure requirements. Additionally, the bill protects providers from liability for changes in estimated APR or payment amounts after a transaction is completed, as long as these changes are due to actual fluctuations in the recipient's sales or revenue. Non-compliance with the bill can result in civil penalties, and affected recipients are granted the right to pursue legal action against non-compliant providers or brokers.