What a UCC-1 filing is
A UCC-1 financing statement is a public notice, filed with the secretary of state, that a creditor claims an interest in certain business assets. MCA funders usually describe your receivables, and sometimes all business assets, as collateral.
How it affects your business
- Future financing. Banks and other lenders see existing UCC filings and may decline to lend or require them to be cleared first.
- Customer notices. A secured party may, in some circumstances, notify your customers to pay it directly.
- Priority. Filings are generally ranked by date, which affects who gets paid first.
Getting a UCC filing terminated
When an MCA is paid in full or settled, ask the funder in writing to file a UCC-3 termination statement. Make the termination part of any written settlement agreement. You can check your state's online UCC search to confirm it was filed.
Any settlement Saldo Vita helps negotiate should address what happens to the UCC filing.
Questions
How do I find UCC filings against my business?
Search the UCC database on your state secretary of state's website using your business's exact legal name.