How to file a UCC-1 financial statement - first time equipment loan
Hey everyone, I'm dealing with my first equipment financing deal and the lender is requiring me to file a UCC-1 financial statement. I've never done this before and honestly have no idea where to start. The loan is for $180k in manufacturing equipment and they want the filing done within 10 days of closing. I know this has something to do with securing their interest in the equipment but beyond that I'm lost. Do I file this myself or does the lender handle it? What information do I need to gather? Any help would be appreciated - trying not to mess this up since it's a significant loan amount.
38 comments
Join the conversation
Adrian Connor
Usually the lender files the UCC-1 themselves as the secured party, but some smaller lenders make the borrower handle it. You'll need to file with your state's Secretary of State office - most states have online portals now. The key info you need is exact legal name of your business (has to match your Articles of Incorporation exactly), your business address, lender's name and address, and a description of the collateral (the equipment).
0 coins
Mikayla Davison
•Thanks! So the business name has to match exactly? We do business as ABC Manufacturing but our legal name is ABC Manufacturing Solutions LLC - which one goes on the form?
0 coins
Adrian Connor
•Always use the exact legal name from your Articles of Incorporation - so ABC Manufacturing Solutions LLC. Any variation can cause the filing to be rejected or worse, make it legally ineffective.
0 coins
Aisha Jackson
Check your loan documents first - there should be a section about who handles the UCC filing. In my experience about 60% of lenders file it themselves and just send you a copy for your records. If you do have to file it yourself, the SOS website for your state will have the forms and instructions.
0 coins
Mikayla Davison
•Good point, I'll double check the loan docs. Haven't gotten to that section yet.
0 coins
Ryder Everingham
•Definitely check those docs carefully. I had a lender tell me they'd handle it then didn't file for 3 months. Almost caused issues when we tried to refinance.
0 coins
Lilly Curtis
Just went through this last month for a $220k equipment purchase. Had to file the UCC-1 myself which was nerve-wracking. Used Certana.ai's document checker after I prepared everything - you just upload your Articles of Incorporation and the UCC-1 form and it instantly verifies the debtor name matches exactly. Caught a small discrepancy I would have missed. Really simple to use and saved me from a potential filing rejection.
0 coins
Mikayla Davison
•That sounds useful - did you have any issues with the filing itself once you verified everything?
0 coins
Lilly Curtis
•Nope, went through without any problems once I had the name exactly right. The tool also checked that all the required fields were completed properly.
0 coins
Leo Simmons
•How much did that service cost? Trying to keep expenses down on this deal.
0 coins
Lilly Curtis
•It's pretty reasonable for the peace of mind, especially on a large loan like yours. Way cheaper than having to refile if something gets rejected.
0 coins
Lindsey Fry
Be really careful with the collateral description. Don't just put 'equipment' - you need to be specific enough to identify what's covered but not so specific that it excludes things. Something like 'all manufacturing equipment, machinery, and related accessories now owned or hereafter acquired by debtor' is typical for equipment loans.
0 coins
Mikayla Davison
•The equipment is pretty specialized - CNC machines and related tooling. Should I list the specific models?
0 coins
Lindsey Fry
•You can, but it's usually better to use broader language that covers everything. If you only list specific models, anything else might not be covered.
0 coins
Adrian Connor
•Agree with broader language. I've seen deals where they listed specific serial numbers then bought additional equipment that wasn't covered because it wasn't on the original UCC-1.
0 coins
Saleem Vaziri
ugh why is this stuff so complicated?? I'm going through the same thing and the SOS website is confusing as hell. Half the links don't work and the forms look like they're from 1995.
0 coins
Aisha Jackson
•Which state are you in? Some are definitely better than others for online filing.
0 coins
Saleem Vaziri
•Ohio. The whole system seems like a disaster.
0 coins
Kayla Morgan
•Ohio's actually not too bad once you figure it out. Try calling their help line if the website is giving you trouble.
0 coins
James Maki
One thing to watch out for - make sure you understand the filing fees upfront. Most states charge around $25-40 for a UCC-1 but some have additional fees for expedited processing. Also if you make a mistake and have to file an amendment (UCC-3) later, that's another fee.
0 coins
Mikayla Davison
•Good to know about the amendment fees. What kind of mistakes typically require amendments?
0 coins
James Maki
•Usually debtor name errors, incorrect addresses, or collateral description issues. Sometimes lenders want to add additional collateral later too.
0 coins
Jasmine Hancock
I always recommend getting the UCC filing done as soon as possible after closing. The lender's security interest isn't perfected until the UCC-1 is actually filed and accepted by the state. If something happens to your business before it's filed, they might not have priority over other creditors.
0 coins
Mikayla Davison
•That's a good point about timing. The lender gave me 10 days but sounds like sooner is better.
0 coins
Jasmine Hancock
•Exactly. Most electronic filings get processed within 1-2 business days, so no reason to wait.
0 coins
Cole Roush
•Some lenders actually require it to be filed before they'll fund the loan. Depends on their risk tolerance.
0 coins
Scarlett Forster
Don't forget to keep copies of everything! The filed UCC-1, the filing receipt, any correspondence. You'll need these if you ever want to terminate the filing after the loan is paid off. I've seen people struggle to get terminations done because they lost their paperwork.
0 coins
Mikayla Davison
•How do you terminate a UCC filing? Is that something I need to worry about now?
0 coins
Scarlett Forster
•You file a UCC-3 termination when the loan is paid off. The lender should handle it but sometimes they don't, so it's good to know the process.
0 coins
Adrian Connor
•Definitely keep good records. I had to chase down a lender for a termination 2 years after paying off a loan.
0 coins
Arnav Bengali
If this is your first time dealing with UCC filings, consider having an attorney review everything before you file. Equipment loans can be complex and a small mistake could affect the lender's security interest. Might be worth the extra cost for peace of mind.
0 coins
Mikayla Davison
•The attorney fees would probably be more than the loan is worth at this point. Trying to keep costs reasonable.
0 coins
Sayid Hassan
•I used that Certana document verification tool someone mentioned earlier instead of an attorney. Much cheaper and caught the issues I was worried about.
0 coins
Arnav Bengali
•That's a fair point. Just make sure you're comfortable with the accuracy before filing.
0 coins
Rachel Tao
Pro tip: most states let you search existing UCC filings for free on their SOS website. Worth checking to see if there are any existing filings on your business name before you file the new one. Could reveal liens you didn't know about.
0 coins
Mikayla Davison
•That's smart - didn't think about checking for existing filings. What would I be looking for?
0 coins
Rachel Tao
•Any UCC-1 filings where your business is listed as the debtor. Could be from previous loans, equipment leases, etc.
0 coins
Derek Olson
•Good advice. I found an old equipment lease filing I forgot about when I did this search.
0 coins