{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/6.2-2228.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/6.2-2228.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/6.2-2228.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/6.2-2228.html"}],"law_id":374141,"edition_id":2,"section_id":374141,"structure_id":53202,"section_number":"6.2-2228","catch_line":"Definitions","history":"2022, c. 516.","full_text":"As used in this chapter, unless the context requires a different meaning:\n\n“Recipient” means a person whose principal place of business is in the Commonwealth and that applies for sales-based financing and is made a specific offer of sales-based financing by a provider. A recipient may also be an authorized representative of such person. A person acting as a broker cannot be a recipient.\n\n“Sales-based financing” means a transaction that is repaid by the recipient to the provider, over time, as a percentage of sales or revenue, in which the payment amount may increase or decrease according to the volume of sales made or revenue received by the recipient. Sales-based financing also includes a true-up mechanism where the financing is repaid as a fixed payment but provides for a reconciliation process that adjusts the payment to an amount that is a percentage of sales or revenue.\n\n“Sales-based financing broker” or “broker” means a person that, for compensation or the expectation of compensation, obtains or offers to obtain sales-based financing from a provider for a recipient.\n\n“Sales-based financing provider” or “provider” means a person that extends a specific offer of sales-based financing to a recipient. Unless otherwise exempt, “provider” also includes a person that solicits and presents specific offers of sales-based financing under an exclusive contract or arrangement with a provider.\n\n“Specific offer” means the specific terms of sales-based financing, including price or amount, that are quoted to a recipient, based on information obtained from or about the recipient, which, if accepted by a recipient, shall be binding on the provider, as applicable, subject to any specific requirements stated in such terms.\n\n","order_by":null,"text":{"0":{"id":1396703,"text":"As used in this chapter, unless the context requires a different meaning:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":""},"1":{"id":1396704,"text":"“Recipient” means a person whose principal place of business is in the Commonwealth and that applies for sales-based financing and is made a specific offer of sales-based financing by a provider. A recipient may also be an authorized representative of such person. A person acting as a broker cannot be a recipient.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"prior_prefix":"","next_prefix":""},"2":{"id":1396705,"text":"“Sales-based financing” means a transaction that is repaid by the recipient to the provider, over time, as a percentage of sales or revenue, in which the payment amount may increase or decrease according to the volume of sales made or revenue received by the recipient. Sales-based financing also includes a true-up mechanism where the financing is repaid as a fixed payment but provides for a reconciliation process that adjusts the payment to an amount that is a percentage of sales or revenue.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"prior_prefix":"","next_prefix":""},"3":{"id":1396706,"text":"“Sales-based financing broker” or “broker” means a person that, for compensation or the expectation of compensation, obtains or offers to obtain sales-based financing from a provider for a recipient.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"prior_prefix":"","next_prefix":""},"4":{"id":1396707,"text":"“Sales-based financing provider” or “provider” means a person that extends a specific offer of sales-based financing to a recipient. Unless otherwise exempt, “provider” also includes a person that solicits and presents specific offers of sales-based financing under an exclusive contract or arrangement with a provider.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"prior_prefix":"","next_prefix":""},"5":{"id":1396708,"text":"“Specific offer” means the specific terms of sales-based financing, including price or amount, that are quoted to a recipient, based on information obtained from or about the recipient, which, if accepted by a recipient, shall be binding on the provider, as applicable, subject to any specific requirements stated in such terms.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"prior_prefix":""}},"ancestry":[{"id":53202,"edition_id":2,"name":"Sales-Based Financing Providers","identifier":"22.1","label":"chapter","depth":3,"order_by":10,"parent_id":53187,"metadata":{"child_laws":11,"child_structures":0},"date_created":"2026-08-02 03:12:57","date_modified":"2026-08-02 12:28:09","permalink":{"id":1494031,"object_type":"structure","relational_id":53202,"identifier":"22.1","token":"6.2\/III\/22.1","url":"\/6.2\/III\/22.1\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53187,"edition_id":2,"name":"Other Regulated Providers of Financial Services","identifier":"III","label":"subtitle","depth":2,"order_by":3,"parent_id":53152,"metadata":{"child_laws":332,"child_structures":12},"date_created":"2026-08-02 03:12:17","date_modified":"2026-08-02 12:28:07","permalink":{"id":1492723,"object_type":"structure","relational_id":53187,"identifier":"III","token":"6.2\/III","url":"\/6.2\/III\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53152,"edition_id":2,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":10,"parent_id":null,"metadata":{"child_laws":961,"child_structures":89},"date_created":"2026-08-02 03:11:41","date_modified":"2026-08-02 12:27:53","permalink":{"id":1490251,"object_type":"structure","relational_id":53152,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":374141,"structure_id":53202,"section_number":"6.2-2228","catch_line":"Definitions","url":"\/6.2-2228\/","token":"6.2\/III\/22.1\/6.2-2228","metadata":false},{"id":374142,"structure_id":53202,"section_number":"6.2-2229","catch_line":"Exemptions","url":"\/6.2-2229\/","token":"6.2\/III\/22.1\/6.2-2229","metadata":false},{"id":374143,"structure_id":53202,"section_number":"6.2-2230","catch_line":"Registration; authority to transact business","url":"\/6.2-2230\/","token":"6.2\/III\/22.1\/6.2-2230","metadata":false},{"id":374144,"structure_id":53202,"section_number":"6.2-2231","catch_line":"Disclosure requirements","url":"\/6.2-2231\/","token":"6.2\/III\/22.1\/6.2-2231","metadata":false},{"id":374145,"structure_id":53202,"section_number":"6.2-2232","catch_line":"Recipient place of business; required signature","url":"\/6.2-2232\/","token":"6.2\/III\/22.1\/6.2-2232","metadata":false},{"id":374146,"structure_id":53202,"section_number":"6.2-2233","catch_line":"Additional information","url":"\/6.2-2233\/","token":"6.2\/III\/22.1\/6.2-2233","metadata":false},{"id":374147,"structure_id":53202,"section_number":"6.2-2234","catch_line":"Place for bringing action under a contract or agreement to provide sales-based financing; certain fees paid by provider; confessions of judgment prohibited","url":"\/6.2-2234\/","token":"6.2\/III\/22.1\/6.2-2234","metadata":false},{"id":374148,"structure_id":53202,"section_number":"6.2-2235","catch_line":"Applicability of chapter to internet transactions","url":"\/6.2-2235\/","token":"6.2\/III\/22.1\/6.2-2235","metadata":false},{"id":374149,"structure_id":53202,"section_number":"6.2-2236","catch_line":"Validity of noncompliant sales-based financing","url":"\/6.2-2236\/","token":"6.2\/III\/22.1\/6.2-2236","metadata":false},{"id":374150,"structure_id":53202,"section_number":"6.2-2237","catch_line":"Regulations","url":"\/6.2-2237\/","token":"6.2\/III\/22.1\/6.2-2237","metadata":false},{"id":374151,"structure_id":53202,"section_number":"6.2-2238","catch_line":"Authority of Attorney General","url":"\/6.2-2238\/","token":"6.2\/III\/22.1\/6.2-2238","metadata":false}],"next_section":{"id":374142,"structure_id":53202,"section_number":"6.2-2229","catch_line":"Exemptions","url":"\/6.2-2229\/","token":"6.2\/III\/22.1\/6.2-2229","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-2228\/","history_text":"

This law was first created in 2022. The record of its establishment is cataloged in chapter 516<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":1494033,"object_type":"law","relational_id":374141,"identifier":"6.2-2228","token":"6.2\/III\/22.1\/6.2-2228","url":"\/6.2-2228\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/6.2-2228\/","token":"6.2\/III\/22.1\/6.2-2228","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-2228","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter, unless the context requires a different meaning:<\/p>

“Recipient<\/span>” means a person<\/span> whose principal place of business is in the Commonwealth and that applies for sales-based financing<\/span> and is made a specific offer<\/span> of sales-based financing<\/span> by a provider<\/span>. A recipient<\/span> may also be an authorized representative of such person<\/span>. A person<\/span> acting as a broker<\/span> cannot be a recipient<\/span>.<\/p>

“Sales-based financing<\/span>” means a transaction that is repaid by the recipient<\/span> to the provider<\/span>, over time, as a percentage of sales or revenue, in which the payment amount may increase or decrease according to the volume of sales made or revenue received by the recipient<\/span>. Sales-based financing<\/span> also includes a true-up mechanism where the financing is repaid as a fixed payment but provides for a reconciliation process that adjusts the payment to an amount that is a percentage of sales or revenue.<\/p>

“Sales-based financing broker<\/span>” or “broker” means a person<\/span> that, for compensation or the expectation of compensation, obtains or offers to obtain sales-based financing from a provider<\/span> for a recipient<\/span>.<\/p>

“Sales-based financing provider<\/span>” or “provider” means a person<\/span> that extends a specific offer<\/span> of sales-based financing to a recipient<\/span>. Unless otherwise exempt, “provider” also includes a person<\/span> that solicits and presents specific offers<\/span> of sales-based financing under an exclusive contract<\/span> or arrangement with a provider.<\/p>

“Specific offer<\/span>” means the specific terms of sales-based financing, including price or amount, that are quoted to a recipient<\/span>, based on information obtained from or about the recipient<\/span>, which, if accepted by a recipient<\/span>, shall be binding on the provider, as applicable, subject to any specific requirements stated in such terms.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 6.2-2228)\n\nAs used in this chapter, unless the context requires a different meaning:\n\n“Recipient” means a person whose principal place of business is in\nthe Commonwealth and that applies for sales-based financing and is made a\nspecific offer of sales-based financing by a provider. A recipient may also be\nan authorized representative of such person. A person acting as a broker cannot\nbe a recipient.\n\n“Sales-based financing” means a transaction that is repaid by the\nrecipient to the provider, over time, as a percentage of sales or revenue, in\nwhich the payment amount may increase or decrease according to the volume of\nsales made or revenue received by the recipient. Sales-based financing also\nincludes a true-up mechanism where the financing is repaid as a fixed payment\nbut provides for a reconciliation process that adjusts the payment to an amount\nthat is a percentage of sales or revenue.\n\n“Sales-based financing broker” or “broker” means a\nperson that, for compensation or the expectation of compensation, obtains or\noffers to obtain sales-based financing from a provider for a recipient.\n\n“Sales-based financing provider” or “provider” means a\nperson that extends a specific offer of sales-based financing to a recipient.\nUnless otherwise exempt, “provider” also includes a person that\nsolicits and presents specific offers of sales-based financing under an\nexclusive contract or arrangement with a provider.\n\n“Specific offer” means the specific terms of sales-based financing,\nincluding price or amount, that are quoted to a recipient, based on information\nobtained from or about the recipient, which, if accepted by a recipient, shall\nbe binding on the provider, as applicable, subject to any specific requirements\nstated in such terms.\n\nHISTORY: 2022, c. 516.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}