CASH Act

HR 3244, the CASH Act, requires providers of factoring agreements to give small businesses clear written disclosures before signing deals under $500,000 in total value. These disclosures must detail the discount rate, all fees, reserve terms, agreement duration, and include a sample calculation for a $10,000 transaction showing net payment. The bill directly affects small businesses that use factoring to access cash for unpaid invoices and their providers. It preempts state laws that would impose stricter disclosure rules, creating a uniform federal standard. This aims to make factoring terms more transparent for small businesses entering these agreements.