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Are you Licensed or Don't Care?

The State of California under the California Finance Lenders Law (CFLL) has declared "sales/leasebacks" to be "loans," and subject to the regulations of consumer and commercial loans.

http://leasingnews.org/PDF/Sale_leaseback.pdf

For years Leasing News has been writing about certain states requiring licenses for those involved in leases that are not true "rentals." California gets criticized for any of its laws from SB 20 and SB 50 'Electronic Waste Recycling Act' and the landmark idea of an eWaste fee'. Many believe none of these laws are necessary. Let's go back to the days of the Triangle Shirt Factory fire or processing of meat, no poultry inspections, and days when you could drive drunk on the streets.

They do not view laws as “protection,” but as an obstruction to any behavior they seek.

It is surprising in the Leasing News "lists" how many funders do not require a license (there are many other states that require "broker/lessors" and "funders" to be licenses.) It is surprising that even though the associations have had courses, conferences, and industry leaders such as the legal counsel for the National Association of Equipment Leasing Brokers Joe Bonanno recommends having a CFLL license, very few are licensed. Even worse, many funders also don't seem to care.

As surprising is how many “broker/lessors” do not even have a business license. This is a real can of worms as some cities believe that if you have an asset in their city and are collecting a "rental payment," you are doing business in their city and subject to their city business license ( in San Francisco there is an "ad valorem" tax. ) Many brokers and lessors obtain state licenses and argue that the state license supersedes having to obtain a city business license.

In reality, house painters and contractors, licensed by the state, must have a city license if they do any work in a city. Even attorneys don't want to have anything to do with this subject, as they should also be required to have a city license if they visit their client or attend a court hearing in another jurisdiction.

Some cities enforce this, others get information from the county assessor or city permit bureaus, and also charge penalties.

So to have a city business license should be standard to not only protect your business, contribute to the services of your city or town (as this is one of the purposes,) but it should also be important to demonstrate to your customers that you are a professional and licensed.

As to a state sales tax license, if you are collecting any sales or use tax in more than three transactions are year in a state, your business should have such a license, which also may require a bond.

Many will only obtain these licenses if they are caught. They think it is “Smart Business:” To get away with as much as you can until you are caught.

To learn more about the California Finance Lender's Law:

http://www.leasingnews.org/Conscious-Top%20Stories/cal_license.htm

Loan/Lease Broker Laws in other states ( this is not complete:)

http://www.leasingnews.org/Conscious-Top%20Stories/Loan_Lease_Statue.htm

In putting the lists together, Leasing News was hoping to get better cooperation to demonstrate how many funders required a license. We were surprised how many do not, and may be another reason they do not want to complete the full information required:

See Answer "B"--Butler Capital/SunBridge Capital/Puget Sound Leasing/ First Heritage Bank/First Federal Leasing/Advantage Funding/Alco Leasing/ Bank Financial/BWC Equipment Leasing/Centennial Bank/Padoco Leasing/

http://www.leasingnews.org/Funders_Only/Funders.htm