New Jersey Bill’s New Definition of “Commercial Financing”

New Jersey Senate Bill 1397 is still alive in 2025. This particular commercial financing disclosure bill intends to require APR disclosures for a broad range of products in commercial financing, including non-loan products.

“Commercial financing means an open-end financing, closed-end financing, sales-based financing, factoring transaction, finance lease, as that term is defined in N.J.S.12A:2A-103, or any other form of financing, the proceeds of which the recipient does not intend to use primarily for personal, family, or household purposes,” the bill says.

Previously, there was a provision in the bill that allowed covered parties to use a “total dollar cost” disclosure OR the APR. The total dollar cost option was removed in a December 19 amendment.