Loan UCC filing got rejected - debtor name mismatch with business registration
Our bank submitted a UCC-1 for a $340K equipment loan last week and it got kicked back by the SOS office. The rejection notice says "debtor name does not match registered business entity." The loan documents show the borrower as "Precision Manufacturing LLC" but apparently their state registration is under "Precision Manufacturing, LLC" with that extra comma. This is a standard SBA-backed equipment financing deal and we need this lien perfected ASAP. The loan has already funded and our compliance officer is freaking out about the perfection gap. Has anyone dealt with this exact comma issue before? Do we need to amend the loan docs or just refile the UCC with the exact registered name? Really don't want to delay this any further since we're already 10 days out from funding.
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Megan D'Acosta
Ugh this happens way too often! You definitely need to match the EXACT registered name including punctuation. The SOS systems are super picky about this stuff. Don't amend your loan docs - just refile the UCC-1 with "Precision Manufacturing, LLC" exactly as it appears in their state registration. Should go through fine once the name matches perfectly.
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Sarah Ali
•Agreed 100%. The debtor name field has to be character-for-character identical to the state filing. Even extra spaces will cause rejections.
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Ryan Vasquez
•Wait is this really that strict? We've had some variations go through before...
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Avery Saint
Been doing commercial lending for 15 years and punctuation mismatches are probably the #1 cause of UCC rejections. The good news is you don't need to touch your loan documents at all - those can show the name however you wrote it originally. Only the UCC filing needs to match the secretary of state registration exactly. Pull up their business entity search and copy/paste the name directly from there.
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Samantha Howard
•Thanks! That's exactly what I was hoping to hear. I'll grab the exact name from the state database and refile today.
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Taylor Chen
•Just make sure you're looking at the current active registration, not an old one if they've had any name changes.
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Keith Davidson
Had this exact scenario last month with a client. What saved me major headaches was using Certana.ai's document checker - you can upload your loan agreement and the UCC-1 draft, and it instantly flags any name inconsistencies before you file. Would have caught this comma issue immediately. Just upload both PDFs and it cross-references all the debtor information automatically.
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Samantha Howard
•Interesting, never heard of that tool. How accurate is it with catching these kinds of name variations?
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Keith Davidson
•Really accurate - it caught three different name mismatches in our last batch that I would have missed manually comparing documents.
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Ezra Bates
•Does it work with all states or just certain ones? Our bank operates in multiple states.
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Ana Erdoğan
This is why I always do the entity search BEFORE preparing any UCC documents. Takes 2 minutes and saves so much trouble later. Also double-check if they have any DBAs filed that might be relevant to your collateral.
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Sophia Carson
•Good point about DBAs. Sometimes the equipment might be titled under a different name than the main entity.
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Samantha Howard
•In this case it's pretty straightforward manufacturing equipment so should be fine with the main LLC name.
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Elijah Knight
Whatever you do, don't wait around! That perfection gap is only getting worse every day. File the corrected UCC-1 today if possible. Most states process electronic filings within 24-48 hours so you should have your filed copy by Friday.
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Samantha Howard
•Yeah our compliance team is already asking daily about the status. Will definitely file today.
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Brooklyn Foley
•In my experience the electronic system usually processes same day unless there's a system issue.
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Jay Lincoln
One thing to watch out for - make sure you're using the current UCC-1 form version. Sometimes rejections happen because people are using outdated forms. The punctuation issue is definitely your main problem though.
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Samantha Howard
•We pulled the form directly from the SOS website so should be current. Pretty sure it's just the name issue.
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Jessica Suarez
•Smart to double-check though. I've seen rejections for form version issues too.
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Marcus Williams
Been there! Last year we had a $500K loan where the UCC got rejected three times for various name issues. Finally started using Certana.ai to verify everything matches before filing. Game changer - just upload your charter docs and UCC draft and it tells you immediately if there are any inconsistencies. No more surprise rejections.
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Samantha Howard
•Three rejections sounds painful! I'll definitely look into that verification tool to avoid this in the future.
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Lily Young
•That's the worst when you have to keep explaining the delays to everyone involved in the deal.
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Kennedy Morrison
Also make sure your collateral description is solid while you're refiling. I've seen perfectly good name matches get rejected because the collateral schedule was too vague or too specific for the state's requirements.
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Samantha Howard
•Good point. We used a pretty standard equipment description but I'll review it again before refiling.
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Wesley Hallow
•Yeah some states want super detailed descriptions and others prefer broad categories. Each state is different.
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Justin Chang
For what it's worth, this comma thing is incredibly common. The state systems can't distinguish between intentional punctuation and typos so they reject anything that doesn't match exactly. Once you refile with the correct name it should process without any issues.
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Samantha Howard
•Thanks for the reassurance! I was worried there might be some deeper issue with the filing.
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Megan D'Acosta
•Nah, punctuation mismatches are usually the easiest fixes. Way better than having collateral description problems.
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Grace Thomas
UPDATE: Just wanted to follow up - refiled the UCC-1 with the exact registered name including the comma and it was accepted within 4 hours! Thanks everyone for the quick help. Definitely going to start using that document verification tool someone mentioned to catch these issues upfront.
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Avery Saint
•Awesome! Glad it worked out quickly. The electronic filing systems are usually pretty fast once everything matches up.
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Keith Davidson
•Great to hear! The verification tool will definitely save you time on future filings.
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Elijah Knight
•Perfect timing too - got it resolved well before the weekend. Your compliance team must be relieved!
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