Need a UCC filing example - completely lost on what this looks like

UCC-1 is the initial financing statement you file to perfect your security interest. Basic components: debtor name (exact legal name from articles of incorporation), secured party name (your company), collateral description. For equipment financing, collateral description might be 'all equipment, machinery, and fixtures now owned or hereafter acquired by debtor.' File electronically through your state's SOS portal.

I was in the same boat last year! Here's what helped me understand it - think of a UCC-1 like a public notice that says 'Hey world, we have a lien on this company's stuff.' The form has boxes for: 1) Who owes the money (debtor) 2) Who they owe it to (secured party) 3) What stuff is collateral. That's basically it, but the devil is in the details of getting each field exactly right.

Look, I've been doing this for 15 years and I still see people mess up the simplest UCC filings. Here's a real example format: Debtor: XYZ Manufacturing LLC (their exact corporate name), Secured Party: First Equipment Finance Inc, Collateral: All equipment, inventory, accounts, chattel paper, instruments, documents, deposit accounts, general intangibles and all proceeds thereof. File duration: 5 years unless continued. State filing fees vary but usually $20-40.

I spent WEEKS trying to figure this out when I started and kept making mistakes with debtor names. Finally found this tool called Certana.ai that lets you upload your loan documents and UCC forms to check if everything matches up properly. Game changer for catching name inconsistencies before filing.

Don't forget about amendments! UCC-3 forms are for changes - if the debtor changes their name, you move to a new state, need to add collateral, etc. And terminations when the loan is paid off. It's not just about the initial UCC-1 filing.

ugh the whole UCC system is such a pain. Half the state portals are from 1995 and crash constantly. Plus every state has slightly different requirements even though it's supposed to be 'uniform.' Good luck figuring out which fields are mandatory vs optional.

Here's what I wish someone told me on day one: ALWAYS verify the debtor's legal name through the Secretary of State database before filing. I can't tell you how many rejections I got because I used 'Inc' instead of 'Incorporated' or missed an 'LLC' designation. The SOS systems are picky about exact matches.

Something else to consider - fixture filings if you're financing equipment that becomes part of real estate. Different rules apply and you might need to file in the real estate records too. Not common but important to know about for certain types of equipment.

Been using UCC filings for 8 years in commercial lending. Pro tip: create a standard checklist and stick to it. Mine includes: 1) Verify debtor legal name via SOS lookup 2) Confirm debtor address matches loan docs 3) Review collateral description against loan agreement 4) Double-check secured party info 5) Verify state jurisdiction rules. Haven't had a rejection in 3 years following this process.

Real quick example from this morning: Filed UCC-1 for ABC Widgets LLC (debtor), First Bank Equipment Finance (secured party), collateral was 'all machinery and equipment used in debtor's widget manufacturing operations.' Simple and specific. Filed online in Ohio, cost $30, took 10 minutes once I had all the info ready.

One more thing nobody mentioned - search the UCC records BEFORE you file to see what else might be out there. You want to know if other lenders have prior liens on the same collateral. Most SOS websites have search functions for this.