what do you do if you have a UCC filing, and how does this effect getting funding or business loans?
Qualifying for business funding is often a difficcult , anxiety riddled process.
To reduce your risk to the lenders/funders and increase your viability of approval, a lender needs to believe that getting money to your company is a smart financial decision. In other words, your business needs to have an acceptable levels of possible default or loss in the eyes of a lender, so in other words they need to be confident your business wont fail.
How can you achieve this level of reduced risk in the eyes of the funder for your business? Having solid business credit scores and a credible, established business with healthy profits is a great start and show you have a strong low risk business. However what should you do if this doesnt describe you...what if you have a ucc lien for instance?
Still, even if you think your business has all its ducks in a row financially and credit wise, you need to know of another potential obstacle which may significatly diminish your chances for loan approval or business funding approval – the UCC filing.
You may have to take an oath to get the UCC lien removed?
How to Remove a UCC Lien (have a UCC lien released)
Rules vary by State around releasing a UCC lien after a borrower satisfied the debt. Basically there are a couple main paths to go about to get rid of the ucc lien. One way is by having the lender file a UCC-3 Financing Statement Amendment. Another way to remove a UCC filing is by swearing an oath of full payment at the secretary of state office.
First lets cover some basics on UCC liens, UCC filings...
What does it mean to have a UCC filing ?
Adam is a Harvard educated small business funding advisor, as well as owner and founder of a previous multi state retail chain. He currently travels the world writing and brokering business funding.