Commercial Financing Disclosure Law
A category of state laws requiring commercial lenders and brokers to give business borrowers standardized, consumer-style disclosures, like total cost and estimated APR, before financing is finalized.
These laws generally require disclosures similar to what consumers already receive on a personal loan, covering figures like total repayment amount, an estimated annual percentage rate, and payment schedule, even though the recipient is a business rather than an individual consumer.
Requirements and which specific products are covered vary significantly by state and change over time, so this is a general concept rather than a summary of any state’s current specific rules; a business or broker should confirm current requirements in the applicable state directly, ideally with legal counsel.
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