; or (II) by a method other than the method described in subclause (I) that is defined by the provider and approved by the Director, with ongoing monitoring by the Director for accuracy based on a comparison of the annual percentage rate as disclosed to the recipient and as calculated retrospectively upon repayment of the financing. (D) Factoring (i) In general With respect to factoring, the estimated annual percentage rate, using that term. (ii) Calculation To calculate the estimated annual percentage rate under clause (i)— (I) the purchase amount shall be considered the financing amount; (II) the purchase amount minus the total cost of financing shall be considered the payment amount; and (III) the term is established by the payment due date of the receivables. (iii) Alternate method to estimate term Notwithstanding clause (ii)(III), a provider may estimate the term for a factoring transaction as the average payment period, its historical data over a period not to exceed the previous 12 months, concerning payment invoices paid by the party owing the accounts receivable in question. (3) Payment amount With respect to small business financing other than factoring— (A) for payment amounts that are fixed— (i) the payment amounts and frequency (e.g., daily, weekly, monthly); and (ii) if the term is longer than one month and payment frequency is other than monthly, the average total monthly payment amount; or (B) for payment amounts that are variable— (i) a full payment schedule or a description of the method used to calculate the amounts and frequency of payments; and (ii) if the term is longer than one month, the estimated average total monthly payment amount. (4) Term For financing other than factoring, the term of the small business financing— (A) in months or in years