This bill introduces 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," "closed-end financing," and "recipient," and mandates that providers disclose essential information at the time of extending financing offers. Required disclosures include the finance charge, estimated annual percentage rate (APR), total payment amount, and any potential fees or collateral requirements. The bill also allows the Commissioner of Banking and Insurance to set regulations for these disclosures, ensuring clarity and comparability for recipients.

Notably, the bill removes the option for providers of factoring and sales-based financing to disclose the estimated yearly total dollar cost instead of the APR, thereby standardizing the information provided. It expands the definition of commercial financing to include finance leases and protects providers from liability for changes in estimated APR or payment amounts due to fluctuations in the recipient's sales or revenue. The bill establishes penalties for non-compliance and allows affected recipients to seek legal recourse for willful violations, with the act set to take effect 180 days after enactment, including a compliance grace period of 120 days following the adoption of final regulations.