Massachusetts UCC filing fees driving up our loan origination costs - better alternatives?

We do try to verify business names but sometimes there are slight variations between what the borrower provides and what's actually on file. Is there a reliable way to cross-check this before filing?

The MA Corporations Division database is your friend here. Always pull the exact entity name from there before preparing your UCC-1.

What kind of review procedures? We're always looking for ways to catch errors before submission.

Mostly double-checking collateral descriptions and making sure we have the right filing office for fixture filings vs regular UCCs.

Haven't heard of that - does it work specifically with Massachusetts requirements?

Yeah it catches the typical MA Secretary of State rejection reasons. Much better than manually comparing documents and missing subtle differences.

Interesting, I've been manually cross-checking everything. Getting pretty tired of the back-and-forth with rejected filings.

This is so true. One typo in a debtor name and you're paying the full fee again plus dealing with the delay.

Exactly. And if you're doing equipment financing, make sure you're not accidentally filing fixtures when you should be doing regular UCCs.

Good point about collateral descriptions. We've had issues where we needed to amend to add equipment that was purchased later.

Try including language about 'all equipment now owned or hereafter acquired' if your loan docs support it. Saves on amendment costs down the road.

Just make sure that broad language aligns with your security agreement. Some courts have been picky about overly general descriptions.

We do pass through some of the costs but it makes us less competitive on smaller loans where the fees are a bigger percentage.

That's the challenge with small commercial loans. The fixed costs don't scale down.

The electronic system is definitely an improvement. Remember when you had to mail paper forms and wait weeks?

Oh god yes, those were dark times. At least now you know within hours if your filing was accepted or rejected.

Good reminder on continuations. Do you continue early or wait closer to the expiration date?

We usually file about 3-4 months before expiration. Gives us buffer time in case there are any issues with the filing.

Smart approach. I've seen lenders get burned by waiting too long and having processing delays.

Be careful with that approach though. Sometimes separate filings give you better control for partial releases or amendments.

True, it's a trade-off between upfront costs and flexibility later.

Most filing services just pass through the state fees plus their markup. You're probably better off doing it yourself and using tools like Certana to catch errors upfront.

That's what I figured. The state fees are the state fees no matter who submits them.

Some services do offer value for complex filings or if you don't have staff familiar with UCC requirements. But for routine filings, DIY is usually more cost-effective.

Yeah but you have to do the termination to clean up the public record. Borrowers expect it and some loan agreements require it.

Oh absolutely, just griping about the cost. It's a necessary expense.

Make sure you're filing terminations promptly too. Some states have statutory requirements for timing.