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Increased Transparency for Small Business Factoring Agreements

New rules require factoring companies to clearly disclose all costs and terms of agreements to small businesses before signing. This aims to help small firms better understand their financing and avoid unexpected fees, enhancing their financial security.
Key points
Factoring companies must disclose all fees and terms for agreements under $500,000.
Disclosures include the difference between invoice value and payout, a list of fees, reserve terms, and agreement duration.
A transaction example must be provided to help small businesses easily understand costs.
The act prevents states from imposing additional or inconsistent disclosure requirements.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_3244
Sponsor: Rep. Lucas, Frank D. [R-OK-3]
Process start date: 2025-05-07
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

CASH Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3244.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-05-07.

What are the main provisions?

Key points include:

  • Factoring companies must disclose all fees and terms for agreements under $500,000.
  • Disclosures include the difference between invoice value and payout, a list of fees, reserve terms, and agreement duration.
  • A transaction example must be provided to help small businesses easily understand costs.
  • The act prevents states from imposing additional or inconsistent disclosure requirements.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Lucas, Frank D. [R-OK-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Small Business.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Economy