Vermont Imposes Licensing and Disclosure Requirements for Sales-Based Financing and Factoring Transactions

Short summary

Vermont enacted H.648 (Act 142) on June 16, 2026, requiring providers and brokers of sales-based financing and factoring transactions to obtain licenses from the DFR and deliver TILA-like standardized disclosures including estimated APR, finance charge, and total repayment amounts. The law takes effect July 1, 2027, with exemptions for depository institutions, government entities, and transactions of $1 million or more. Providers must be licensed as lenders under 8 V.S.A. § 2200 et seq., and brokers need a loan solicitation license.

• •Vermont H.648 requires licensing for sales-based financing and factoring providers and brokers effective July 1, 2027
• •Standardized APR and finance charge disclosures must be signed before funding
• •Exemptions cover depository institutions, government entities, and transactions $1M+

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