Complete Guide to Florida Lending Licenses

Just like in Texas, California, and New Jersey, to offer consumer loans in Florida, you have a lending license – specifically Consumer Finance Company License. But what is that and what are the steps to getting a Consumer Finance Company Licence in Florida?

In this post, we’ll explore the requirements and process to apply for a Consumer Finance Company License in Florida as well as some alternative options for businesses that want to lend in the state.

Florida Consumer Finance Company Licenses

For any person or business wishing to offer consumer loans in the state of Florida, it is required that they secure a Consumer Finance Company License. This license authorizes the holder(s) to solicit, make, and collect loans to consumers in Florida. 

Interest Rates

Per state regulations, loans managed under a Consumer Finance Company License must comply with certain interest rate restrictions. A licensed Consumer Finance Company may charge the maximum interest rate of: 

• 30% per annum, computed on the first $3,000 of the principal as computed from time to time; 
• 24% per annum on that part of the principal amount as computed from time to time exceeding $3,000 and not exceeding $4,000; and 
• 18% per annum on that part of the principal amount as computed from time to time exceeding $4,000 and not exceeding $25,000.

Businesses and individuals that would like to offer consumer loans with a Consumer Finance Company License will need to meet several requirements.

Florida Consumer Finance Company License Requirements

While almost anyone is eligible for a Consumer Finance Company License in Florida, there are certain requirements that must be met in order to qualify for one. 

1. Application, Fees, and Proof of Assets

The first requirement is for the potential lender to submit an application, pay two important fees, and provide proof of assets. Each applicant must submit: 

• A completed Application for Consumer Finance Company License, Form OFR-516-01;
• The statutory, non-refundable investigation fee required by Section 516.03, F.S.;
• The statutory, non-refundable biennial license fee required by Section 516.03, F.S.; and,
• Evidence that the applicant has liquid assets of at least $25,000.00.

Completing the application and paying the fees are fairly straightforward. Providing “evidence” of $25,000 for the operation of the consumer finance company requires documentation from an insured financial institution that the liquid assets are on deposit with the institution.

2. Biographical Summaries

The second requirement for a Consumer Finance Company License is for the submission of a completed Biographical Summary/Summaries from Form OFR-516-01 to the Office of Financial Regulation. Individuals who must submit Form OFR-516-01 include each: 

• Equitable owner of 10% or greater interest
• Chief executive officer
• Chief financial officer
• Chief operations officer
• Chief legal officer
• Chief compliance officer
• Control person
• Member
• Partner
• Joint venturer 
• Director

Once a potential lender has familiarized themself with the requirements detailed above, they are ready to apply for a Consumer Finance Company License. 

You can read more about Florida’s Consumer Finance License requirements here. 

How to Apply for a Consumer Finance Company License in Florida

To apply for a Consumer Finance Company License in Florida, applicants must complete Form OFR-516-01. 

This form is divided into the following sections:

• Applicant Information
• Contact Information
• Applicant Organization & History
• Net Worth Requirement
• Pawnbroker Question
• Disclosure Requirements
• Signature

This form is used by Consumer Finance Companies to either file for an initial license or make an amendment to a pending application or an existing license. This form can also be used to terminate an existing license or withdraw a pending application. 

Consumer Finance Company License Fees

The total cost to apply for a Consumer Finance Company license in Florida is $825 across two fees:

• Application fee ($625) 
• Investigation fee ($200) 

These fees may be paid for by a check made payable to “The Department of Financial Services.”  

Return the completed form and fee(s) to: 

Office of Financial Regulation Division of Finance 

200 East Gaines St. 

Tallahassee, FL 32399-0376

Additional Requirements for the Florida Consumer Finance Company License

Some additional actions and information may be required after the potential lender is completed the applications process, including:

Request for Additional Information

The Office of Financial Regulation may require more information to complete the review of an application and will send any request for that information within thirty (30) days of receiving the application. The applicant, then, has forty-five (45) days to satisfy the request.

The Office will grant the applicant an additional forty-five (45) days to satisfy the request if the extension is requested prior to the forty-five (45) day deadline. Failure to satisfy requests for additional information will result in the application being deemed “abandoned” and removed from consideration.

Amendments to Pending Applications

If it is determined that some information in the application is inaccurate, the applicant must file an amendment within thirty (30) days after the change on Form OFR-516-01, Application for Consumer Finance Company License. After thirty (30) days, an application can only be amended with prior written permission from the Office of Financial Regulation.

Requests to make changes that are material to the application shall be deemed by the Office of Financial Regulation to be grounds for denial, and a new application, accompanied by the appropriate filing fees, shall be required. Material changes include:

• The substitution or addition of an ultimate equitable owner of 10% or greater interest, a chief executive officer, a chief financial officer, a chief operations officer, a chief legal officer, a chief compliance officer, a control person, a member, a partner, or a joint venturer; and,
• Amendments affecting the $25,000.00 liquid asset requirement.

Withdrawing an Application and Refunds

Applicants may request the withdrawal of applications so long as the request is made before the Office of Financial Regulation rules on the applications. To withdraw an application, the applicant must submit a written request of withdrawal. Requests to withdraw applications are considered effective upon receipt by the Office. 

If an application is withdrawn or denied, all fees are non-refundable.

NMLS as an Alternative Path to Getting Licensed in Florida

The Nationwide Multistate Licensing System is a nationwide platform for the licensing of companies and professionals in the financial services industry. It streamlines the licensing process, enhances supervision, and increases transparency in the financial services market.

Below, you’ll find a concise guide on applying for a commercial lending license with the NMLS in Florida.

Preparation

Before starting your application, understand the requirements for a commercial lending license. It’s crucial to have a clean financial history, professional experience in lending, and an understanding of Florida’s lending laws.

Create an NMLS Account

You can start the application process by creating an account on the NMLS website. This account will be your hub for managing your license application and maintaining your license after approval.

Complete a Pre-License Education

Prospective applicants must complete 20 hours of NMLS-approved pre-license education courses. The course generally covers topics like federal law, ethics, lending standards, and non-traditional mortgage lending.

Pass the SAFE Mortgage Loan Originator Test

After completing the education courses, you’ll need to pass the SAFE Mortgage Loan Originator Test. This test consists of a national component and a state-specific component. Both sections must be passed with a score of 75% or higher.

Submit Your Application

Once you’ve completed your education and passed your tests, you can submit your application through your NMLS account. The application includes providing your personal and financial information, as well as details about your business plan.

Complete a Background Check and Credit Report

After submitting your application, you’ll need to undergo a criminal background check and have your credit report reviewed.

Pay the Required Fees

There will be fees associated with your application, testing, and initial licensing. These fees will be detailed in your NMLS account.

Maintain Your License

Once your license is approved, you’ll need to maintain it. This includes annual renewals through NMLS and continuing education courses.

Applying for a Commercial Lending License through NMLS offers many benefits. It presents a uniform application process, reduces regulatory burden for licensees ope

Final Thoughts

Obtaining a Consumer Finance Company License is necessary for any individual or business that wishes to offer consumer loans in Florida. The license comes with specific requirements, including the submission of a completed application, payment of fees, and evidence of liquid assets of at least $25,000. Applicants must also submit biographical summaries for certain key individuals. After completing the application process, additional actions and information may be required. It is essential to be aware of the regulations to ensure compliance and avoid delays or denial of a license. With the proper understanding and adherence to the requirements, obtaining a Consumer Finance Company License in Florida can be a smooth and straightforward process.

Florida Lending License FAQ

Below, you will find several frequently asked questions about Florida lending licenses: 

What is a Florida commercial lending license?

A Florida commercial lending license is a license that authorizes a company or individual to engage in commercial lending activities in the state of Florida. It is required for anyone who wants to lend money commercially in the state.

Who needs a Florida commercial lending license?

Anyone who engages in commercial lending activities in Florida, including loan brokers, mortgage lenders, and finance companies, needs a Florida commercial lending license.

How do I apply for a Florida commercial lending license?

To apply for a Florida commercial lending license, you will need to complete an application and pay a fee. The specific requirements and fees may vary depending on the type of license you are applying for.

What are the requirements for a Florida commercial lending license?

The requirements for a Florida commercial lending license may vary depending on the type of license you are applying for. However, common requirements include submitting an application, providing proof of financial responsibility, and passing a background check.

What are the consequences of operating without a Florida commercial lending license?

Operating without a Florida commercial lending license is illegal and can result in severe penalties, including fines and legal action. Additionally, loans made without a license may be unenforceable, and borrowers may have legal recourse to recover any payments made.

Frank Gogol

A seasoned SEO expert, Frank has a long history of working with and for startups. Starting in mid-2018, Frank served as the SEO Strategist for Stilt, a fintech startup that provided fair loans for immigrants in the US and other underserved markets. While with the company, he scaled site traffic from zero to more than 1.5 million unique visits per month, driving the bulk of the company’s lead generation until it was acquired by J.G. Wentworth in December 2022. As employee #5 at Stilt, Frank was witness to, and part of, the successful building and sale of a fintech company, uniquely positioning him to create content for founders about all things startups.

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