Texas Finance Code - FIN § 398.001. Definitions

(1) "Commercial sales-based financing" or "commercial sales-based financing transaction" means an extension of sales-based financing to a recipient by a provider, the proceeds of which the recipient does not intend to use primarily for personal, family, or household purposes.

(2) "Commercial sales-based financing broker" means a person who, for compensation or the expectation of compensation, obtains commercial sales-based financing for a recipient or offers to obtain commercial sales-based financing for a recipient from a provider.

(3) "Disbursement amount" means the amounts paid to the recipient or on the recipient's behalf.  The term does not include any finance charges that are deducted or withheld at disbursement.

(4) "Finance charge" means the cost of commercial sales-based financing expressed as a dollar amount.  The term includes a charge payable, directly or indirectly, by the recipient that is imposed, directly or indirectly, by the provider of the financing as an incident to, or a condition of, the extension of financing.

(5) "Person" means an individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust, sole proprietorship or other unincorporated organization, or other similar entity.

(6) "Provider" means a person who provides or will provide commercial sales-based financing to a recipient or who extends a specific offer of commercial sales-based financing to a person applying for that financing or the person's authorized representative.

(7) "Recipient" means a person, or the authorized representative of a person, who applies for commercial sales-based financing and is made a specific offer of commercial sales-based financing by a provider.  The term does not include a person acting as a commercial sales-based financing broker.

(8) "Sales-based financing" means a transaction that is repaid by the recipient to the provider of the financing:

(9) "Specific offer" means the specific terms of commercial sales-based financing.  The term includes a price or amount quoted to a recipient by a person providing the financing based on information obtained from or about the recipient that, if accepted by the recipient, would be binding on the provider, subject to specific requirements in the financing terms.

(10) "Total repayment amount" means the sum of the disbursement amount and finance charge.