UCC Document Community

Bottom line - don't overthink this. UCC filings are routine parts of business financing. Your lender handles the filing, you review it to make sure the information is correct, and then you move on with your loan. The filing protects the lender's interest in your equipment, which is what allows them to offer secured financing rates. Just make sure they file the termination when you pay off the loan and you're all set.

One thing that hasn't been mentioned yet - make sure you understand what happens if you want to sell or refinance the equipment before the loan is paid off. The UCC filing means the lender has to consent to any sale or transfer of the collateral. You'll need a UCC-3 partial release if you're selling some equipment, or they might require the sale proceeds to pay down the loan first. This is pretty standard but good to know upfront so you're not surprised later if you need to restructure your financing.

Whatever you do, make sure you proofread everything carefully! I once had a UCC-1 rejected because I typo'd "machinery" as "machinary" in the collateral description. Such a stupid mistake but it held up the whole closing.

Just wanted to add one more consideration - timing. Since you mentioned closing is next week, make sure you check the processing times for UCC-1 filings in your state. Some states have same-day or 24-hour processing for online filings, but others can take 3-5 business days. If you're cutting it close, you might want to call the filing office to confirm processing times. Nothing worse than having a closing delayed because the UCC-1 didn't get processed in time for the title company or lender to verify the filing. Also, once you file, make sure to get the file-stamped copy immediately for your closing documents. Most lenders want to see the actual filed UCC-1 with the file stamp and date before they'll fund.

Bottom line is UCC fees are going to keep increasing and there's not much we can do about it except factor them into loan pricing. Focus on reducing other costs where possible and making sure your filings are done right the first time to avoid duplicate fees.

New to the secured lending space and this thread is eye-opening about UCC costs! I'm setting up a small asset-based lending operation and was budgeting $20 per filing based on old info. Sounds like I need to revise those projections significantly. Are there any resources for tracking current UCC fees by state? Would hate to get surprised by fee increases after we're already operational.

Update us when you get it figured out! I'm sure other people will run into the same character limit issues with addendums. Always helpful to know what actually works in practice vs what the instructions say.

I've dealt with this exact same issue multiple times! The character limits are incredibly frustrating. Here's what I've found works best: First, try using broader category descriptions like "Manufacturing Equipment" or "Production Machinery" instead of listing every serial number. Second, make sure you're using the attachment feature properly - most states allow you to reference "See Attachment A" in the collateral field and then include a detailed schedule as a separate page. Third, and this is crucial - verify that your debtor name matches EXACTLY with the original UCC-1, including all punctuation and spacing. Even tiny differences will cause rejections. I'd also recommend calling the Secretary of State's UCC division directly - they're usually more helpful than you'd expect and can tell you exactly what format they want. Don't let your lender pressure you into rushing this - it's better to get it right the first time than deal with priority issues later.

UPDATE: Called Regional Credit Corp and demanded the UCC-3 filing number. After 2 hours on hold, they admitted they never actually filed the assignment! They're rushing to file it today but now I'm worried about the timing for our closing. This is exactly why secured party searches exist - to catch these problems.

This is a perfect example of why I always verify UCC filings within 30 days of any assignment or transfer. Regional Credit Corp dropping the ball for 8 months is unacceptable, especially on an $850K deal. Since they're finally filing the UCC-3 now, make sure you get expedited processing if your state offers it - usually costs extra but worth it for your timeline. Also document everything about their failure to file originally in case you need to pursue damages for any closing delays or additional costs. Your new lender should definitely be putting pressure on them too since this kind of negligence reflects poorly on their servicing capabilities.