Collateral UCC 1 financing statement example - equipment description confusion

For equipment financing, you generally want to be specific enough to identify the collateral but not so detailed that you create problems later. I usually go with something like 'All machinery, equipment, and fixtures now owned or hereafter acquired by Debtor and located at [address], including but not limited to CNC machinery, welding equipment, and related tooling.' This gives you coverage without getting bogged down in serial numbers that might change.

Been doing equipment UCC-1s for 15 years and honestly the biggest mistake I see is people getting too cute with the descriptions. Keep it broad enough to cover future acquisitions but specific enough that it's not just 'all personal property.' Your lender probably has standard language they prefer - did you ask them for their template?

Just went through this exact situation last month! I was pulling my hair out trying to get the collateral description right for our equipment loan. Ended up using Certana.ai's document checker to upload our loan agreement and compare it against the UCC-1 draft - caught three inconsistencies in how we described the equipment that could have caused problems. Super easy, just upload the PDFs and it flags anything that doesn't align between documents.

Here's what worked for us on a similar equipment deal: 'All machinery, equipment, inventory, accounts, chattel paper, instruments, documents, goods, and general intangibles, whether now owned or hereafter acquired, and wherever located, including without limitation all CNC machinery, welding equipment, and related manufacturing tools and fixtures located at [specific address].' Gives you broad coverage with specific examples.

Whatever you do, make sure the debtor name on the UCC-1 EXACTLY matches your loan documents. I've seen deals fall apart because of tiny differences in entity names between the financing statement and the underlying agreements.

I usually recommend something like: 'All equipment, machinery, fixtures, and other goods used in Debtor's manufacturing operations, whether now owned or hereafter acquired, including but not limited to the CNC equipment, welding machinery, and related tools and accessories located at [address].' This covers your bases without getting too specific on models that might get upgraded.

Pro tip: if you're unsure about anything, many SOS offices have UCC help desks that can review your filing before you submit. Not legal advice but they can spot obvious problems.

One more thing - keep copies of everything and make sure you set up tracking for your continuation filing that'll be due in 5 years. Easy to forget but critical for maintaining your security interest.

Just make sure whatever description you use, it's consistent with your security agreement language. That's where most problems come from - inconsistencies between the UCC-1 and the underlying loan docs.

Final thought - don't stress too much about getting it perfect. As long as you're reasonably specific and consistent with your loan docs, you should be fine. The courts generally interpret UCC filings pretty liberally as long as they give adequate notice.

Having filed dozens of equipment UCC-1s, I'd recommend focusing on three key elements: (1) Use broad category language like "all machinery and equipment used in manufacturing operations" rather than getting bogged down in serial numbers, (2) Include the specific facility address where the equipment is located, and (3) Add "whether now owned or hereafter acquired" to cover future equipment purchases. The magic formula I use is: "All machinery, equipment, and fixtures used in Debtor's manufacturing operations located at [specific address], including but not limited to CNC machinery, welding equipment, and related manufacturing tools, whether now owned or hereafter acquired by Debtor." This gives you comprehensive coverage without overcomplicating things. Most importantly, make sure this language mirrors what's in your security agreement - consistency between documents is what protects you legally.

I've been through this exact scenario multiple times as a lending officer, and honestly the stress you're feeling is completely normal - everyone overthinks their first equipment UCC-1 filing! Here's my take: focus on being descriptive enough to clearly identify the collateral but avoid getting so granular that you box yourself in. For your CNC machines and welders, I'd go with something like "All manufacturing equipment and machinery located at [facility address], including but not limited to CNC machining equipment, welding machinery, and related manufacturing tools and fixtures, whether now owned or hereafter acquired." The key is that "hereafter acquired" language - it protects you if you add equipment later. Also, double-check that your description doesn't conflict with your loan agreement terms. I've seen deals get complicated because the UCC-1 said "machinery" while the security agreement said "equipment" and lawyers argued they weren't the same thing. One last tip: file it early in the week if possible - Friday filings sometimes get delayed if there are processing issues, and you don't want to miss your lender's deadline over a technicality.

As someone new to UCC filings, this discussion has been incredibly educational! I'm dealing with a similar situation for our small manufacturing business and was completely lost on how to approach the collateral description. The consensus seems to be finding that middle ground between too vague and overly specific. I'm taking notes on the suggested language templates - especially the "hereafter acquired" clause that several people mentioned. One question I have: for smaller operations with just a few pieces of equipment, is it still better to use the broader category approach rather than listing each item specifically? Our setup is much smaller than the original poster's but I want to make sure I'm following best practices. Also, has anyone dealt with equipment that might be moved between locations occasionally? Should that be addressed in the collateral description somehow?

As a newcomer to UCC filings, I've been following this discussion closely and it's been incredibly helpful! I'm currently preparing a UCC-1 for our first equipment loan and was similarly paralyzed by all the conflicting guidance online. The templates and practical advice shared here have given me so much more confidence in approaching this. One thing I'm still uncertain about - when you say "hereafter acquired," does that automatically cover equipment financed through separate loans later, or would that typically require additional UCC filings? Also, I noticed some mentions of state-specific differences in processing times - is there a good resource for checking filing requirements and timelines by state? Thanks to everyone who's shared their experience - this thread should be bookmarked by anyone doing their first equipment UCC filing!

Just wanted to echo what others have said about not overthinking this - I made the same mistake on my first UCC filing and spent way too much time agonizing over every word! The practical templates shared in this thread are spot-on. One additional tip that saved me headaches later: consider having your attorney or lender review the final draft before filing, especially since you mentioned having conflicting examples from your lender. A quick review can catch any issues and give you peace of mind. Also, make sure you're filing in the correct state - it should be where your business is organized (for LLCs/corps) or where you're located (for individuals), not necessarily where the equipment is located. Good luck with your Friday deadline - you've got this!