If you are a sales-based financing provider or broker seeking to do business in Virginia, you need to be registered with the state to comply with the new sales-based financing laws. For those that haven’t done so, I am going to dive into what the process is like if you aren't an expert at navigating the system and haven't researched what needs to be done to get registered.
This will be the registration system for many funders and brokers as they decide to do business in Virginia. As of November 30th, there are only just over 30 registered entities with the state so there should be many more in the years to come.
Registration process for sale-based financing providers or brokers
The process should be the same for either a direct provider(funder) or a broker. I started by finding the state commission website. Once on the Virginia SCC website, there isn’t a clear section for the registration of sales-based financing providers.
After searching by different terms, I finally ended up with the results for sales-based financing.
At the top of the results are:
-Application Forms
-Regulated Financial Institutions- Verify a License
-Sales-based-financing-provider-registrant-report (with a PDF)
-Sales-Based Financing Registration Form-ccb13001 (with a PDF)
So after downloading the ccb13001 form(found below) it seemed like it should be simple and straightforward enough but after reading the instructions it is still a bit unclear as to a second part of what is needed to comply. The first part that says you must fill out the form and then either mail it with a $1,000 check or email the form to an email address and then wait for an invoice is simple.
However, it goes on to say that you “must separately comply with the corporate registration requirements referenced in § 6.2-2230 of the Code.”
When clicking on the link they provide to complete that step, there is nothing but a general website page for businesses.
Not knowing what to do from there, I figured I would call the office to make sure all the procedures are followed.
This is when it became apparent that no one knows what they are doing with regard to this new sales-based financing registration system.
The first person that I talked to was very short and not very helpful to put it lightly. She didn't have any idea what new law I was asking about. So she transferred me to the automated service line where I had to explain myself all over to the 2nd person who wasn’t immediately aware of the new law and registration system.
After a couple of minutes of going around in circles, she says I needed to talk to the Bureau of Financial Institutions department and transferred me to an automated service again!
A lady by the name of Kathleen comes on. I tell her she was now the 3rd person I spoke to after 30 minutes and no one is able to tell me what else I have to do to comply besides fill out the form and email it.
After going back and forth for a while through all the instructions with her she admits the instructions are unclear on what else is needed to comply. I tell her to relay that message to the higher-ups because there will be many people who end up going through the same thing I did and waste time doing so.
Kathleen still says that I need to register separately over the phone first before I submit the ccb13001 form. The part that I believe she means is referring to obtaining the authority to transact business in Virginia, according to the provisions of Title 13.1. To do so she says she has to transfer me to the correct department. I reluctantly agree to be transferred but only if it's going to the correct person.
Guess what happens? The automated system!
It was 45 minutes on the phone at that point so I hung up. No way I was willing to waste another minute.
With the information I had, I decided if I was filing for a provider or broker I would simply email the form and wait for the invoice for the $1,000 fee.
Steps to register
While all of the previously mentioned may sound like a lot, it can be narrowed down to a few steps without the hassle of speaking to anyone at least initially.
To summarize the steps, you should:
download the ccb13001 form, fill it out and get notarized
send the notarized form to the email address provided BFIApplications@scc.virginia.gov and wait for the invoice, OR mail the ccb13001 form with a $1,000 check to the following address on the form:
Bureau of Financial Institutions
State Corporation Commission
1300 East Main Street, Suite 800
Post Office Box 640
Richmond, Virginia 23218-0640
Once you send the form, you can call (804) 371-9690 with any questions or wait until you hear from their office.
It can take several weeks to hear back. If they have any questions or issues they might reject the registration but tell you what you need to provide to overcome any issues.
Many who have already registered may have had a much easier time or better experience. I get that it's a new law and new system so they are getting used to things just as I was. Things they can control and improve on are clarifying the instructions and educating their service reps.
Good luck to all of you who need to register.
Current Registrants
If you would like to see who is already registered then view our post on those companies or you can download the PDF file on their website which is updated monthly.
