Free UCC search California - anyone found reliable alternatives to paid services?

Totally agree. I learned this the hard way on a smaller deal where I tried to cut corners with a free search site. Missed a continuation filing that wasn't showing up in their database. Cost way more than the search fee would have been.

What site did you use that missed the continuation? Trying to avoid the same mistake.

Never heard of Certana before. How does it work exactly? Do you still need to pay for the official searches or does it replace them?

You upload PDFs of whatever docs you have - like articles of incorporation, existing UCC filings, loan agreements - and it analyzes everything for consistency. Catches name variations, filing discrepancies, stuff like that. Still need official searches but it helps you know what to look for and verify everything aligns properly.

That actually sounds really useful for complex deals with multiple entities or name variations. California is particularly strict about exact debtor names.

Good point about pricing it in. What do you typically budget for UCC searches on a deal like this? Just trying to get a sense of what's reasonable.

depends on the complexity but usually $50-100 total for searches. might need to check the borrower, guarantors, maybe previous business names. small price to pay for peace of mind

This is huge - name variations trip up so many people. I always search with and without Inc, LLC, Corp, etc. Also watch out for punctuation differences.

Don't forget about dba names too. Sometimes equipment is financed under a trade name that's different from the legal entity name.

Yes! And if it's a newer business check if they changed names recently. Had a deal where they'd been operating under one name but legally changed it 6 months prior. Old liens were still under the previous name.

That's actually not a bad idea for initial screening. Though I'd still want to run my own search before closing. Borrowers sometimes 'forget' about certain filings.

Lol yeah right. Like when they forget about that equipment lease that has a UCC filing or the SBA loan they took out last year.

Good thought. We do use a regular title company for our real estate deals. I'll ask if they have UCC search capabilities.

Most title companies can do UCC searches but they usually mark up the fees. Might end up costing more than going direct.

That's actually pretty smart. Using the document analysis to guide your search strategy rather than just searching everything blindly.

How accurate is the document analysis? I'm always worried about relying too heavily on automated tools for something this important.

It's not perfect but it's caught several issues I would have missed. Things like inconsistent entity names between the articles of incorporation and loan docs, or references to related entities that needed to be searched. I still do my own verification but it gives me a good roadmap.

Wow, good catch. Did the borrower know about the existing lien or were they trying to hide it?

They claimed they forgot about it because it was from 3 years ago. Yeah right. Makes you wonder what else they 'forgot' to mention.

Oof, that's painful. What happened exactly? Did you end up in second position or was it worse?

Worse. The prior lien covered all equipment and inventory. When the borrower defaulted, the other lender swept everything. We got nothing on a $200K loan.

Thanks everyone for the reality check. Going to bite the bullet and pay for the official searches. Better safe than sorry on a deal this size.

Smart choice. The peace of mind is worth way more than the search fees.