US HB3244

Requires factoring providers to give written disclosures to small businesses before entering factoring facility agreements under $500,000, detailing the difference between invoice face value and payment amount, fees, reserve terms, and agreement duration

Mandates that disclosures include a $10,000 example transaction showing applicable fees, reserve amounts, and the net payment the small business would receive

Preempts state and local laws from imposing additional or inconsistent disclosure requirements on factoring providers regarding small business factoring agreements

Defines factoring transactions as sales of accounts receivable for goods or services already provided but not yet paid, excluding loans or advances based on future receivables

Does not require disclosures when modifying existing factoring facility agreements