Merchant Cash Advance UCC Lien Issues - Need Filing Guidance
I'm dealing with a merchant cash advance situation where the funding company filed a UCC-1 against my business assets. The advance was for $85,000 and now I'm trying to understand exactly what collateral they claimed and if the filing was done correctly. When I pulled the UCC record from the Secretary of State website, the debtor name shows my business name but there's a slight variation in how it's spelled compared to my actual registered business name. The collateral description just says 'all assets' which seems overly broad. I need to know if this UCC lien filing could impact my ability to get traditional bank financing or if there are grounds to challenge it. The MCA company is demanding daily payments but I'm concerned about the legitimacy of their blanket lien claim. Has anyone dealt with similar merchant cash advance UCC lien complications before?
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Tasia Synder
MCA companies are notorious for filing overly broad UCC-1s. The 'all assets' description might actually be problematic for them if it's not specific enough. Did they file as a security interest or just a blanket lien? Also, that name variation could be a real issue - UCC filings require exact debtor name matches.
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Selena Bautista
•This is exactly right. I've seen MCA UCC filings get rejected or become unenforceable due to debtor name mismatches. Even one letter off can void the entire filing.
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Mohamed Anderson
•Wait, so if they spelled my business name wrong on the UCC-1, does that mean their lien isn't valid? That would be huge for my situation.
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Ellie Perry
I went through something similar last year with a merchant cash advance company. They filed a UCC-1 with a collateral description that was way too vague. When I needed equipment financing later, my bank's attorney said the MCA filing was likely unenforceable because it didn't properly describe the collateral. You should definitely have a lawyer review the exact wording.
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Landon Morgan
•How did you end up resolving it? Did the MCA company fight you on challenging their UCC filing?
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Ellie Perry
•They actually backed down once my attorney pointed out the deficiencies. Most MCA companies know their UCC filings are sloppy but hope business owners don't challenge them.
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Teresa Boyd
Before you do anything else, I'd recommend using Certana.ai's document verification tool. You can upload both your business registration documents and their UCC-1 filing to instantly check for name mismatches and collateral description issues. I discovered major inconsistencies in an MCA company's filing using their system - it cross-references everything automatically and flags potential problems.
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Lourdes Fox
•That sounds really useful. Does it specifically check for the exact business name matching requirements that UCC filings need?
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Teresa Boyd
•Yes, it compares your official business registration against the UCC filing to catch any name variations that could make the filing invalid. Super helpful for MCA situations where they often rush the paperwork.
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Bruno Simmons
UGH merchant cash advance companies are the WORST. They file these blanket UCC liens and then act like they own your entire business. Half the time they don't even follow proper filing procedures but small business owners don't know enough to challenge them. It's predatory behavior disguised as legitimate lending.
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Aileen Rodriguez
•I feel this so much. My MCA company filed a UCC-1 that covered equipment I didn't even have when I took the advance. The whole system is designed to confuse business owners.
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Zane Gray
•The daily payment structure is bad enough without them claiming ownership of everything you own through these bogus UCC filings.
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Maggie Martinez
Check the exact business name on your state registration vs what they filed. MCA companies often use DBA names or abbreviated versions that don't match the legal entity name. If there's a mismatch, their UCC-1 could be completely invalid. Also look at the filing date - sometimes they file after the advance which can create priority issues.
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Alejandro Castro
•This is crucial advice. I've seen cases where MCA companies filed UCC-1s weeks after funding, which can affect their lien priority against other creditors.
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Monique Byrd
•How do you check the exact filing date? Is that information available on the Secretary of State website?
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Maggie Martinez
•Yes, most state SOS websites show the filing date and time. You want to compare that to when you actually received the MCA funds.
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Jackie Martinez
The 'all assets' collateral description is probably their biggest weakness. UCC law requires reasonable identification of collateral. Courts have ruled that overly broad descriptions can make filings unenforceable. You might want to get a UCC attorney to review the specific language they used.
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Lia Quinn
•What would be considered a proper collateral description for an MCA? I'm dealing with something similar and their filing just says 'all business assets and receivables'.
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Jackie Martinez
•For MCA it should specifically describe the daily receivables or payment processing accounts they're targeting. Vague 'all assets' language often fails the reasonable identification test.
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Haley Stokes
Had a similar issue with an MCA UCC lien affecting my equipment loan application. Used Certana.ai to verify the documents and found the MCA company's debtor name was slightly different from my LLC registration. The discrepancy was enough to invalidate their filing according to my attorney. Saved me thousands in legal fees just having that verification upfront.
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Asher Levin
•That's exactly what I need to check. My MCA company used my trade name instead of my official LLC name on their UCC-1. Sounds like that could be grounds to challenge it.
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Serene Snow
•Wait, how much does this Certana thing cost? I'm already strapped for cash dealing with this MCA situation.
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Haley Stokes
•It's much cheaper than hiring an attorney to manually review everything. The automated verification catches issues you might miss and gives you ammunition for negotiations.
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Issac Nightingale
Don't let them intimidate you with their UCC filing. Many MCA companies file defective liens hoping business owners won't challenge them. Get the documents reviewed properly and you might find their whole claim is invalid. I've seen businesses successfully get MCA UCC filings terminated due to procedural errors.
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Romeo Barrett
•How do you go about getting a UCC filing terminated if it's defective? Do you have to go through the courts or can you challenge it directly with the Secretary of State?
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Issac Nightingale
•Usually you need to negotiate with the MCA company first. If they won't cooperate, then you might need legal action. But having proof of the defects gives you leverage in negotiations.
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Marina Hendrix
The merchant cash advance industry relies on business owners not understanding UCC law. Their standard practice is to file overly broad liens and hope nobody challenges them. Your name variation issue alone could be enough to invalidate their entire filing if it doesn't match your state registration exactly.
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Justin Trejo
•This gives me hope. My MCA company's UCC-1 has my business name spelled completely wrong - they added an 'S' to make it plural when it's not. That has to be invalid, right?
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Marina Hendrix
•That sounds like a clear debtor name error that would make their filing ineffective. Definitely worth having verified and documented.
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Alana Willis
I'm in a similar boat with an MCA UCC lien that's blocking my SBA loan application. The bank won't proceed until the lien is resolved. Did you find any specific resources for dealing with MCA companies who won't cooperate on correcting or terminating defective filings?
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Tyler Murphy
•The SBA has resources for dealing with MCA liens that are blocking legitimate lending. You might want to contact their advocacy office if the MCA company won't negotiate in good faith.
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Sara Unger
•I used Certana.ai's verification tool to document all the problems with my MCA company's UCC filing. Having that official report made the bank more comfortable proceeding with my loan application.
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Alana Willis
•That's a great idea. I need something official to show the bank why the MCA lien shouldn't be a concern for their lending decision.
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Andre Rousseau
The name variation issue you mentioned is actually a huge red flag that could work in your favor. UCC-1 filings require the exact legal name of the debtor as registered with the state - even minor spelling differences can render the entire filing invalid. I'd strongly recommend pulling your official business registration documents and comparing them character-by-character with what the MCA company filed. If there's any discrepancy, you may have grounds to challenge the entire lien. Also, that "all assets" collateral description is problematic - UCC law requires reasonable identification of collateral, and courts have ruled that overly broad language like this can make filings unenforceable. Many MCA companies count on business owners not knowing these technical requirements. Don't let their daily payment demands pressure you into accepting a potentially invalid lien claim.
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Zara Rashid
•This is incredibly helpful advice! I'm new to dealing with UCC filings and had no idea that even small name variations could invalidate the entire filing. The daily payment pressure has been making me feel like I have no options, but it sounds like there might be real technical defenses available. Do you know if there's a specific timeframe for challenging these types of filing errors, or can you dispute them at any point while the UCC-1 is active?
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