What You Need to Know About UCC filingsEditor
First question you may have here would be, “What’s a UCC filing?”. This stands for Uniform Commercial Code. When your business obtains a secured or commercial loan, a lease, as well as some other purchases, this legal form is filed by the lender. It gives them rights to collateral in the event of the business defaulting on the loan. There are different forms of these filings, but the most common resulting from business loans are UCC (1). As is the case when you bought your home, Uniform Commercial Codes are public record. This would be why you may find yourself suddenly receiving phone calls asking you if you need additional money or services.
This public record usually publishes the debtor’s and creditor’s names, addresses and a general reason the filing’s made. The Secretary of State, in the location the borrower is from, typically is who the filing is with.
When a loan’s paid off, a lender may not automatically remove A UCC. Be sure to keep on top of this and ask the lender to remove it.
Second (and above) position loans at Fast Capital will not have a UCC filed. In the case of a loan default, a UCC filing can occur. First position loans, which we also offer, will result in a filing.