CASH Act

HR 9632, the CASH Act, requires factoring providers to give small businesses clear written disclosures before entering into factoring agreements for transactions under $500,000. These disclosures must detail fees, reserve amounts, payment terms, and include a concrete example (e.g., for a $10,000 invoice) showing how payments are calculated. The bill directly affects small businesses entering such agreements and prevents states from adding extra disclosure requirements. It aims to increase transparency in factoring deals, where businesses sell unpaid invoices for immediate cash, by standardizing required information.