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(A) The monthly sales, income or receipts volume received through the particular
payment channel or mechanism; and
(B) The monthly sales, income, or receipts received through any other payment
channel or mechanism that the financing contract would have required
recipients to redirect to the particular payment channel or mechanism had
the financing contract been operative previously.
(2) For all transactions, or by recipient industry or financing amount (or both), a provider
shall fix the number of months used to calculate the recipient’s average monthly
historical sales, income, or receipts, provided that the period of historical data used by
the provider shall not be less than four (4) months or more than twelve (12) months.
(3) When a recipient has not been in operation for the number of months set by the
provider as described in subdivision (b)(2) of this section, the provider may calculate the
recipient’s historical average sales volume, income, or receipts using an average from
the months the recipient has been in operation.
(4) Notwithstanding subdivision (b)(2), a provider may exclude from the average calculation
required by subdivision (b)(1):
(A) the monthly sales, income, or receipts from any month that is less than the
average monthly sales, income, or receipts of the months required to be
considered under paragraphs (2) and (3), if the provider determines that the
decreased monthly sales, income or receipts volume in that month arose from
a cause, such as a natural disaster or uncommon business interruption, that is
unlikely to recur during performance of the contract. A provider shall have no
liability for failing to exercise the option permitted under this subparagraph.
(B) the monthly sales, income, or receipts from any month for which the recipient
failed to provide documentation of average monthly sales, income, or receipts
following the provider’s request.
(C) the monthly sales, income, or receipts from any number of months at the
beginning of the period (starting with the oldest month) set by the provider
under paragraph (2), if the provider does not require and receive monthly
sales, income, or receipts documentation from those months from the
recipient.
(5) In addition to the months considered pursuant to subdivision (b)(2) of this section, a
provider may include in its average calculation all or none of the additional months for
which the recipient has provided sales, income or receipts documentation, excluding
any months in which the recipient was not in operation.
(6) When a provider fixes the number of months it will consider pursuant to subdivision
(b)(2), the provider shall record this decision in an internal document that includes the
effective date of the provider’s decision. If the provider modifies the months fixed
pursuant to subdivision (b)(2), the provider shall create a new version of the document
required by this paragraph. The provider shall maintain a copy of every version of the
document while it is in effect and for a period of four years thereafter.
(c) If a provider must make additional estimates or assumptions other than a recipient’s estimated
monthly sales, income, or receipts projection to provide disclosures required by this subchapter,
the provider shall: