The "Commercial Financing Disclosure Act" is a proposed bill that aims to enhance transparency in commercial financing transactions in South Carolina by adding Chapter 81 to Title 39 of the South Carolina Code of Laws. The bill defines key terms related to commercial financing, such as "accounts receivable purchase transaction," "broker," and "provider," and outlines the types of transactions to which the provisions apply. It mandates that providers of commercial financing must deliver written disclosures detailing the terms of the financing transaction, including the total amount of funds provided, any fees deducted, and payment terms. The bill also establishes specific prohibitions for brokers, such as the collection of advance fees and the use of misleading representations.

Enforcement of the act is designated to the Attorney General, who is empowered to handle complaints and initiate legal proceedings for violations. The bill stipulates penalties for non-compliance, including fines that escalate with repeated violations. Notably, the act does not create a private right of action for individuals or entities against others based on compliance or noncompliance. The provisions of this act are set to take effect on January 1, 2026, and it excludes certain entities and transactions from its scope, such as federally insured depository institutions and transactions exceeding five hundred thousand dollars.