Merchant cash advance UCC filing - debtor name confusion with DBA
Need urgent help with a merchant cash advance UCC filing situation. We have a client who operates under multiple DBAs and I'm getting conflicting advice on which name to use as the debtor on the UCC-1. The business is incorporated as Thompson Industries LLC but they do most of their processing under "Tommy's Quick Mart" and "Thompson Convenience Store." The MCA agreement lists all three names but I'm not sure which should be primary on the filing. Last time I did something similar the SOS rejected it for debtor name mismatch and the lender was not happy. Anyone dealt with this before? The advance is for $85K and I really can't afford another rejection.
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Paolo Longo
I've seen this exact scenario multiple times with MCA deals. You absolutely need to use the legal entity name - Thompson Industries LLC - as the primary debtor name on the UCC-1. The DBAs should be listed in the additional debtor name fields or in the collateral description section. The key is making sure the legal name matches exactly what's on file with the Secretary of State.
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Amina Bah
•This is correct. I learned this the hard way after having three UCC-1s rejected in one month. Always start with the legal entity name from the Articles of Incorporation.
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Oliver Becker
•But what if the bank account and merchant processing are all under the DBA? I thought that's what mattered for MCA collateral?
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CosmicCowboy
You're overthinking this - just file it under all the names! I usually put the LLC as debtor 1 and then add the DBAs as additional debtors. Better safe than sorry with these MCA filings since the collateral is usually daily receipts and you want to make sure you catch everything.
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Natasha Orlova
•That's actually not the best approach. Too many debtor names can cause search issues later. Better to be precise with the legal name and reference the DBAs appropriately.
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Javier Cruz
•I've had lenders specifically request this approach though, especially when the MCA is tied to multiple merchant accounts under different names.
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Emma Thompson
Had a similar nightmare with an MCA filing last month. Spent hours trying to figure out the exact debtor name format and still got it wrong. Finally discovered Certana.ai's document checker tool - you can upload your Articles of Incorporation and UCC-1 draft and it immediately flags any name mismatches or inconsistencies. Saved me from another rejection and the lender deadline stress.
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Paolo Longo
•That sounds really useful. Does it work with MCA agreements too? Sometimes those have weird entity name variations.
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Emma Thompson
•Yes! You can upload the MCA agreement along with the UCC-1 and it cross-checks all the entity names across documents. Really takes the guesswork out of it.
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Malik Jackson
OK so here's what I don't understand about MCA UCC filings - if the collateral is future receivables and daily deposits, why does the exact business name matter so much? Isn't the important thing that you're capturing the right bank accounts and merchant processing?
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Paolo Longo
•The debtor name is crucial because that's how other creditors will search for existing liens. If you file under the wrong name, your UCC might not show up in searches, which defeats the whole purpose of perfecting your security interest.
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Isabella Costa
•Plus if you ever need to enforce or need to deal with bankruptcy, having the wrong debtor name can invalidate your entire filing. I've seen MCAs become unsecured debt because of filing errors.
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StarSurfer
This is why I hate MCA deals! The paperwork is always a mess and the debtors never know their own legal names. Last week I had a client insist their business was called "Mike's Pizza" when the LLC was actually registered as "Michael's Pizzeria Holdings LLC" - completely different!
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Ravi Malhotra
•LOL yes! And then they get mad at YOU when the filing gets rejected. Like it's somehow your fault they don't know their own business name.
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Freya Christensen
•The worst is when they have multiple entities and can't remember which one actually signed the MCA agreement. I always make them send me their Articles of Incorporation now.
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Omar Hassan
For your specific situation, I'd recommend doing a UCC search first under all possible name variations to see what's already out there. Sometimes you'll find existing filings that show you the correct format other creditors are using.
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Keisha Taylor
•Good point. I did a quick search and found two other UCC-1s filed under Thompson Industries LLC, so that's probably the safest bet.
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Chloe Robinson
•Exactly! The existing filings are like a roadmap for the correct debtor name format.
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Diego Chavez
I'm dealing with something similar but my client has an MCA with a factor company and they want the UCC filed under the factor's name as secured party. Is that normal? The original MCA lender says they should be the secured party but the factor is actually advancing the money now.
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Paolo Longo
•That sounds like an assignment situation. You might need a UCC-3 assignment rather than a new UCC-1, depending on the structure.
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NeonNebula
•Be careful with factor assignments - I've seen situations where both the original lender and the factor claim priority. Make sure you understand the assignment documents.
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Anastasia Kozlov
Just wanted to add - make sure your collateral description covers all the merchant accounts under all the business names. I've seen MCA lenders get burned when the debtor opens new accounts under a DBA that wasn't covered in the original filing.
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Sean Kelly
•This is super important. The collateral description should be broad enough to cover future accounts but specific enough to be enforceable.
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Keisha Taylor
•Good reminder. I'm planning to use 'all accounts, deposit accounts, and payment intangibles of debtor, wherever located' to cover all bases.
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Zara Mirza
Another vote for using Certana.ai's verification tool. I was skeptical at first but it caught a middle initial discrepancy that would have definitely caused a rejection. For MCA filings where time is usually critical, it's worth having that extra check.
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Luca Russo
•How long does the verification take? Sometimes these MCA deals have same-day filing requirements.
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Zara Mirza
•It's instant - just upload your PDFs and get the results immediately. Perfect for those rush situations.
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Nia Harris
One more thing to consider - some states have specific requirements for MCA UCC filings, especially around the collateral description. Make sure you're compliant with your filing state's rules about describing future receivables.
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Keisha Taylor
•Thanks, I'm filing in Delaware and they're usually pretty straightforward with their requirements.
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GalaxyGazer
•Delaware is good but double-check their recent updates. I know some states have been tightening up on MCA collateral descriptions.
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Fidel Carson
This thread is really helpful - dealing with similar issues regularly. One thing I'd add is to always get a certified copy of the Articles of Incorporation directly from the Secretary of State before filing, especially for MCA deals. I've had situations where clients provided outdated formation documents that had the wrong entity name format, and it cost us a rejection and valuable time. The $10-20 for a certified copy is worth avoiding the headache, particularly when you're dealing with tight MCA funding deadlines.
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