As state regulatory standards evolve, small business transparency in commercial financing has taken center stage. Virginia was among the first states to enact a dedicated regulatory framework for sales-based financing transactions with its Sales-Based Financing Disclosure Law (HB 1027, codified at Va. Code §§ 6.2-2228–2238). Administered by the Virginia State Corporation Commission (SCC), this statute establishes clear disclosure, registration, and dispute-resolution rules designed to protect Virginia business owners seeking working capital.
At CFG Merchant Solutions® (CFGMS), transparent financing has always formed the foundation of our business. Here is an overview of Virginia’s requirements and how CFGMS ensures complete compliance and peace of mind for Commonwealth entrepreneurs.
What Does Virginia’s Law Require?
Unlike broad commercial lending laws in some other jurisdictions, Virginia’s framework specifically targets sales-based financing transactions of $500,000 or less subject to statutory exemptions.
The law introduces three core pillars:
State Registration: Providers and brokers must be officially registered with the Virginia State Corporation Commission and authorized to conduct business in the Commonwealth.
Upfront Disclosures (§ 6.2-2231): Before entering an agreement, providers must present recipients with a standardized disclosure detailing:
Total financing amount and net disbursement after deducted fees.
Total finance charge and total repayment amount.
Estimated number of payments and payment amounts (fixed or variable methodology).
All other potential fees (e.g., late or draw fees) and early payoff/refinance policies.
Collateral or security interests, as well as any broker compensation paid directly by the provider.
Borrower Protections: Confessions of judgment are strictly prohibited, and Virginia law imposes restrictions on forum selection and dispute resolution provisions involving covered sales-based financing agreements.
How CFGMS Is Committed to Compliance in Virginia
Navigating regulatory standards requires experience, disciplined underwriting, and an unwavering commitment to merchant success. For CFGMS, Virginia’s requirements mirror the ethical standards we uphold nationwide:
- Registered & Authorized: CFGMS maintains policies and procedures designed to comply with applicable Virginia regulatory requirements.
- Upfront, Transparent Term Sheets: We deliver itemized disclosures at the time of an offer. Our clients see every detail—from net proceeds and total finance charges to payment cadence—with zero hidden fees.
- Ethical Revenue-Based Structures: Our financing solutions are tied to your operational cash flow. We provide transparent reconciliation provisions, so your payments remain proportionate to your business revenues.
- Trusted Industry Leadership: Boasting an A+ rating from the Better Business Bureau (BBB) and over $2.6 billion funded nationwide, CFGMS combines rigorous compliance with lightning-fast execution.
Fuel Your Growth with CFG Merchant Solutions®
Whether your Virginia business is investing in new equipment, hiring seasonal staff, or smoothing receivables, you need a funding partner that provides both speed and designed transparency.
With CFGMS, approvals are rapid, funds can be deposited in as little as 24 to 48 hours, and your financing terms are clear from start to finish.
Take Your Business to the Next Level:
- Contact a Funding Specialist: Call us today to discuss custom capital solutions suited to your cash flow.
- Apply Online: Visit CFG Merchant Solutions® to submit your quick application and receive a fully compliant, transparent funding offer.