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On October 1, 2025, Nevada's Senate Bill 437 took effect, modernizing Nevada's Installment Loan and Finance Act to reflect the growth of online consumer lending and "buy now, pay later" (BNPL) products. The new law authorizes "Internet consumer lenders," defined as companies that make, solicit, or facilitate consumer loans exclusively through the internet, to apply for and maintain a Nevada lending license without operating a physical office within the state.
Under prior law, consumer lenders were required to maintain a licensed office within Nevada, even if all lending activity occurred online. Senate Bill 437 eliminates this in-state office requirement, authorizing Internet consumer lenders to apply for and maintain a Nevada license while operating from a location outside the state. The change removes a significant barrier for online and BNPL lenders that previously leased unused office space solely for compliance purposes.
To preserve Nevada's oversight authority, the law requires Internet consumer lenders to make their books and records available to the Commissioner of Financial Institutions upon request or agree to cover the regulator's reasonable travel and examination costs. In addition, every loan contract between an Internet consumer lender and a Nevada resident must be governed by Nevada law and provide that any dispute, including litigation or arbitration, occur within the state. Any conflicting out-of-state choice-of-law or venue clause is deemed void and unenforceable.
Putting It Into Practice: Nevada's new framework provides BNPL and online lenders with expanded access to the state's consumer credit market while preserving Nevada's jurisdiction over disputes and applicable law. Several states have recently enacted similar measures expanding licensing frameworks and clarifying oversight for digital lenders (previously discussed here). Lenders offering installment or pay-in-four products should review their contractual governing-law provisions, ensure they reference Nevada law for Nevada borrowers, and confirm that their licensing and compliance programs align with the new Internet consumer lender category.
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