Equipment Loan UCC-1 Forms Keep Getting Rejected - Debtor Name Issues
Been dealing with a nightmare situation for the past month. Our company took out a $450K equipment loan and the bank's UCC-1 forms keep getting rejected by the secretary of state. This is the third time we've had to resubmit and I'm starting to panic because the loan agreement says if we don't get the lien perfected within 45 days, they can call the entire loan due immediately. The rejections keep coming back with "debtor name does not match entity records" but we're using the exact same name that's on our articles of incorporation. The equipment we're financing includes two CNC machines and a plasma cutter - pretty standard manufacturing equipment. Our legal name is "Precision Manufacturing Solutions, LLC" and that's exactly what we put on the UCC-1 forms. Has anyone else run into this kind of debtor name matching problem? The bank is getting impatient and honestly so am I. We need these machines operational for a big contract that starts next month. Any advice on what might be causing these rejections would be hugely appreciated.
36 comments
Join the conversation
Sofia Perez
I've seen this exact issue multiple times. The problem is usually that your registered name with the state might have slight variations from what you think it is. Even something like having "Solutions" vs "Solution" (singular) or missing a comma can cause rejections. You need to check your actual certificate of formation or articles of incorporation to see the EXACT formatting the state has on file.
0 coins
Dmitry Smirnov
•This is so true. I spent weeks going back and forth because our name had "Inc." on the UCC-1 but the state records showed "Incorporated" spelled out. Such a small thing but it killed three filings.
0 coins
ElectricDreamer
•Wait, but shouldn't the bank have caught this before submitting? Our lender always does a preliminary name search before filing anything.
0 coins
Ava Johnson
Pull your certificate of formation from the secretary of state website immediately. Don't trust what you remember or what's on your business cards. I guarantee there's a formatting difference somewhere. Also check if you have any assumed names or DBAs filed that might be interfering.
0 coins
Dylan Cooper
•Just checked and you're right - our registered name shows "Precision Manufacturing Solutions LLC" without the comma before LLC. That's probably it! Going to have the bank resubmit with the correct formatting.
0 coins
Miguel Diaz
•That comma thing gets everyone! The state databases are super picky about punctuation matching exactly.
0 coins
Zainab Ahmed
•45 days is cutting it close though. Make sure your bank expedites the refiling and maybe ask about getting an extension on that perfection deadline if possible.
0 coins
Connor Byrne
Before you resubmit again, you might want to try uploading your documents to Certana.ai's verification tool. You can upload your articles of incorporation and the UCC-1 form together and it'll instantly flag any name mismatches or inconsistencies between the documents. I wish I'd known about this before I went through five rejections on a filing last year.
0 coins
Yara Abboud
•Never heard of Certana but that sounds useful. Is it one of those expensive legal tech platforms?
0 coins
Connor Byrne
•Not expensive at all, you just upload PDFs and it checks everything automatically. Saved me from another rejection when it caught that my collateral description was too vague.
0 coins
PixelPioneer
•Interesting, I'll have to look into that. These manual document reviews are killing me.
0 coins
Keisha Williams
UGH the debtor name matching requirements are absolutely ridiculous. I've had filings rejected because of periods after abbreviations, spacing differences, you name it. The whole system needs an overhaul. Why can't they just match on the entity number instead of relying on exact text matching?
0 coins
Paolo Rizzo
•Preach! I've been saying this for years. Other states have much more flexible matching algorithms.
0 coins
Amina Sy
•The entity number thing makes sense but I think they're worried about fraud if they make it too easy to file against any entity.
0 coins
Oliver Fischer
•Still, there's got to be a middle ground between perfect text matching and complete chaos.
0 coins
Natasha Ivanova
Equipment financing UCC-1s are pretty straightforward once you get the name right. Your collateral description sounds fine - CNC machines and plasma cutter are specific enough. Just make sure you include the serial numbers if you have them, it helps with identification later.
0 coins
Dylan Cooper
•Good point about serial numbers. The bank included them on the collateral schedule so we should be covered there.
0 coins
NebulaNomad
•Serial numbers aren't required but they definitely help if you ever need to do a termination or amendment later.
0 coins
Javier Garcia
Check if your state allows online name searches through their UCC database. Some states let you search for existing filings under variations of entity names to see what format they accept. Might save you another rejection.
0 coins
Emma Taylor
•This is smart. You can also see how other lenders have filed against your entity if there are any existing liens.
0 coins
Malik Robinson
•Our state's search function is terrible but it's better than nothing. Worth trying for sure.
0 coins
Isabella Silva
•Just remember that the search results might not show pending filings, only accepted ones.
0 coins
Ravi Choudhury
I work in commercial lending and see this all the time. The 45-day perfection deadline is serious business, so don't mess around. If you're not confident about the name format, call the secretary of state's UCC division directly. Most states have a helpline for exactly these questions.
0 coins
CosmosCaptain
•Good advice. The phone support is usually pretty helpful for name verification questions.
0 coins
Freya Johansen
•Some states even have email support where you can send them the proposed debtor name and they'll confirm it matches their records.
0 coins
Omar Fawzi
Just went through something similar with a client's equipment loan. Turned out the issue was that they had amended their articles of incorporation to change their name slightly but hadn't updated their EIN records. The UCC system was cross-referencing multiple databases and finding inconsistencies.
0 coins
Chloe Wilson
•That's a nightmare scenario. How did you resolve it?
0 coins
Omar Fawzi
•Had to file an amendment with the IRS first, then wait for it to propagate through the state systems. Took about two weeks but finally got the UCC-1 accepted.
0 coins
Diego Mendoza
•Wow, I never would have thought to check the EIN records. Good catch.
0 coins
Anastasia Romanov
For future reference, when you're doing equipment financing make sure your lender does a preliminary UCC search before drafting the financing statement. Any competent secured transactions attorney should catch name discrepancies before filing. Sounds like your bank might have dropped the ball on due diligence.
0 coins
StellarSurfer
•Agreed. This should have been caught in the loan documentation phase, not after three rejections.
0 coins
Sean Kelly
•Banks are cutting corners on UCC work lately. Seen too many sloppy filings that could have been avoided with basic due diligence.
0 coins
Zara Malik
Update us when you get this resolved! I'm dealing with a similar situation on a $300K inventory loan and want to make sure I don't run into the same problems.
0 coins
Dylan Cooper
•Will do! Planning to have the bank resubmit tomorrow with the corrected name format. Hopefully fourth time's the charm.
0 coins
Luca Greco
•Fingers crossed! The name matching thing is such a pain but once you get it right, the rest should be smooth sailing.
0 coins
Nia Thompson
•I'd also recommend double-checking with that Certana tool someone mentioned earlier. Better safe than sorry at this point.
0 coins