HLS 25RS-855 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 470
BY REPRESENTATIVE MCFARLAND
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FINANCIAL INSTITUTIONS: Provides relative to revenue-based financing transactions
1 AN ACT
2To enact R.S. 9:3137.10, relative to revenue-based financing transactions; to provide for
3 definitions; to provide for amounts charged in a revenue-based financing transaction;
4 and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 9:3137.10 is hereby enacted to read as follows:
7 ยง3137.10. Revenue-based financing transaction
8 A.(1) For the purposes of this Chapter, "revenue-based financing
9 transaction" means an agreement under which a person engaged in a commercial
10 enterprise sells or agrees to forward a percentage of sales, revenue, or income, and
11 the person's payment obligation increases and decreases according to the volume of
12 sales made or revenue or income received.
13 (2) For the purposes of this Chapter, a "revenue-based financing transaction"
14 is not a transaction for the use, forbearance, or detention of money.
15 B. Amounts charged in a revenue-based financing transaction, whether in the
16 nature of a fee, discount, or otherwise, are not interest, and no disclosure of any
17 interest rate, factor rate, or annual percentage rate shall be required.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 25RS-855 ORIGINAL
HB NO. 470
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 470 Original 2025 Regular Session McFarland
Abstract: Provides relative to revenue-based financing transactions.
Proposed law defines revenue-based financing transaction.
Proposed law provides that amounts charged in a revenue-based financing transaction,
whether in the nature of a fee, discount, or otherwise, are not interest, and no disclosure of
any interest rate, factor rate, or annual percentage rate shall be required.
(Adds R.S. 9:3137.10)
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.