What Is a UCC Search and How Can You Perform One? A Guide

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Are you a small business owner? Are you looking to expand the credit profile of your business?

If so, it can be challenging to know what the appropriate steps to take are.

One avenue to assist you in this is conducting a UCC search, as it is a touchstone aspect in the process of acquiring a loan for your small business.

Now, you may be asking yourself: what is a UCC search?

In this article, we will cover what it is and how you can file for one to begin expanding your business.

What Is a UCC Search?

UCC stands for Uniform Commerical Code, and it is a nationwide group of regulations that controls all business transactions in America. Initially instituted back in 1952, UCC liens are used for transactions between states.

This process helped by allowing each participant to make transactions with one another without having to cling to the rules of each state’s individualized laws.

With the UCC, businesses located in separate states could now consent to a familiar set of contractual agreements.

The code has 9 write-ups that contain the framework of loans, banks, and other kinds of day-to-day transactions.

What Is UCC filing?

Also referred to as a financing statement, a UCC filing is a lawful form a lender utilizes to show its interest in a particular property that a borrower is using as collateral.

If there are any debts associated with your business at this time, your lenders — more than likely — will use UCC filings to protect themselves if you fail to pay your debt.

UCC Liens: How Do They Work?

In the unfortunate event that you default on your payments, or go bankrupt, your lender can indefinitely seize hold of your property. But if you do repay the debt, then you will once again, regain the legal rights to your land.

Even if your lender knows you’re capable of repaying the debt, they might still order a UCC lien on the property.

And that’s fine, having a filed UCC lien for your business will only scantly affect its regular operations.

Filing for a UCC Lien

Contacting the secretary of state in which your business functions will be the first order of operations. Second, you need to provide all the necessary information to identify yourself as well as your company (name, address, etc).

Thirdly, be sure that you’re doing a thorough analysis while reading a UCC search report. It’s important that you know what’s involved when it comes to this process.

And lastly, there has to be a sensible implication of the type of collateral you’re putting up. Your lender may use any label or classification to ensure this.

Using a UCC to Expand Your Small Business

When it’s all said and done, a UCC is simply a set of regulations that help your company do business beyond the borders of your state. So if you’re still wondering: what is a UCC search?

Just think of it as an index of rules that help you avoid the stipulations of other states while doing business with companies located within them.

If you enjoyed this article, feel free to check out some of our other posts.


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