Texas Requires Sales-Based Financing Providers to Register

TexasRequires Sales-Based Financing Providers to Register

The TexasOffice of Consumer Credit Commissioner (OCCC) announced that NMLS will beginreceiving new application filings for the Commercial Sales-Based Finance (CSBF)Company Registration on September 1, 2026. The registration, created by HB 700(Tex. Fin. Code Ch. 398), applies to persons and entities providing orbrokering commercial sales-based financing, including merchant cash advanceproducts, in Texas. Providers and brokers already operating in Texas mustregister by December 31, 2026; new entrants must register before conductingbusiness in the state.

Key Updates:

•      Applicants with an existing NMLS account forthe registering entity should log in and apply through that account; entitieswithout one must create a new NMLS account using IRS documents that exactlymatch the entity name and FEIN.

•      A registration becomes active upon receipt ofthe required initial registration fee, and the registration is treated as theCompany License in NMLS; Other Trade Name (OTN) filings apply only when two ormore DBAs are used at one address.

•      Application checklists will be available onSeptember 1, 2026.

•      Registrations are not transferable; ownershipchanges involving a new entity or FEIN require a new registration.

FS Vector monitors ongoing state guidance forcommercial sales-based financing providers and brokers to help ensurecompliance with the latest requirements. Contact FS Vector for assistancenavigating the new Texas CSBF registration requirement.

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