Virginia's Sales-Based Financing Disclosure Requirements

Virginia requires providers and brokers of sales-based financing to register with the State Corporation Commission and to deliver written disclosures before consummating a transaction.

The statute is aimed specifically at revenue-linked products rather than all commercial credit.

Total amount of funds provided and disbursed, total repayment amount, total dollar cost, estimated APR, projected payment amounts and frequency, estimated term, and a description of reconciliation rights.

Reconciliation disclosure is the notable addition — Virginia requires the funder to explain how a merchant can adjust remittance when revenue falls.

Reconciliation is what makes revenue-based financing genuinely revenue-based. A written, testable process is the difference between a purchase of receivables and a fixed obligation with a flexible marketing description.

Virginia merchants should read that paragraph before the pricing lines.