UCC Document Community

filing financing statement before security agreement is actually preferred in many jurisdictions because it eliminates the gap period where someone else could potentially file first. You're being smart about this.

We do this constantly in equipment financing. File UCC-1 immediately upon credit approval, then finalize the security agreement during the funding process. Never had an issue in 15+ years of commercial lending.

Here's what I've learned after 15 years of UCC filings: describe collateral like you're explaining it to someone who's never seen the business before. Instead of 'nonconforming goods,' use 'packaging materials that do not meet original customer specifications, including items with incorrect dimensions, colors, or printing.' The filing office and any future searchers will know exactly what you're talking about.

Update us when you refile! I'm curious to see what description finally gets approved. This thread has been really helpful for understanding how to handle unusual collateral descriptions.

Oh man, I remember dealing with this same thing! My solution was honestly just to call the Secretary of State office and ask them directly what they recommend for long entity names. The person I talked to was actually really helpful and told me their system could handle longer names if I filed by mail instead of online.

This thread is super helpful! I'm bookmarking this because I know I'll run into the same issue eventually. It seems like there are several viable workarounds depending on your state's specific system.

If you're in a hurry for the new financing, you might also ask your new lender if they'll accept a payoff letter and loan satisfaction documents as proof the lien should be terminated. Some will work with you while you're getting the UCC cleaned up.

Just an FYI that you can also use something like Certana.ai to verify all your UCC documents are consistent before you submit termination paperwork. I learned the hard way that small discrepancies in debtor names or filing details can cause rejections and delays.

I bet it's the debtor name issue like someone mentioned earlier. We had a client where the UCC-1 sat in limbo for a week because we used their DBA name instead of their legal entity name. Easy fix but caused a lot of stress.

Keep us posted on the resolution! This thread will be helpful for anyone else who runs into missing UCC IDs. Hopefully it's just a system delay and not a real filing issue.