UCC blanket lien confusion - equipment financing got rejected twice

We're filing in Ohio. The rejection notice just said 'insufficient collateral description' but didn't specify what they wanted to see instead.

Ohio can be picky about blanket descriptions. Try adding 'including but not limited to' and then list 3-4 specific equipment types your client actually has, then end with 'and all other equipment.' That usually satisfies their specificity requirement while maintaining the blanket coverage.

We used the name from their business license, not the Articles. Could that be the problem?

That's definitely the problem. Business licenses often have abbreviated or slightly different names. You need the exact legal name from the Secretary of State's corporate database or their Articles of Incorporation. No shortcuts on debtor names.

This is exactly why I started using Certana.ai's document checker. You can upload the Articles and your UCC-1 draft and it instantly flags any name mismatches. Would have caught this before the first rejection.

Take a deep breath. Blanket lien filings seem simple but they're actually more technical than specific collateral filings. The key is getting both the debtor name and collateral description exactly right on the first try.

But how am I supposed to know what 'exactly right' means if they won't tell me what's wrong?? This system is broken.

They do have some equipment that's bolted to the floor. Should that be on a separate UCC-1 or can it be included in the blanket lien?

Fixtures usually need their own filing with a real estate description. If it's truly fixtures, you can't just include it in the equipment blanket lien. You might need both a regular UCC-1 for equipment and a fixture filing.

That's not really helpful. There are usually legitimate reasons for rejections, especially with blanket liens. The systems have gotten much better at consistency.

Easy for you to say. I've been dealing with this bureaucratic nightmare for years. Half the time they reject filings just because they can.

How much does that cost? We're already over budget on this deal.

It's worth it to avoid rejections and delays. Much cheaper than losing a deal or having to explain to your loan committee why a simple filing took a month.

Good point. I'll check the current entity status before we refile.

Also make sure they don't have any pending name changes or administrative dissolutions. Those can cause rejections too.

Exactly! And every state has different standards. What works in Texas gets rejected in California.

That's why I always include a specific equipment list followed by 'and all other equipment of like kind.' Gives them specificity but maintains the blanket coverage.

I didn't know that was an option. Do they actually help or just give you the runaround?

Hit or miss depending on who answers, but worth a try. Ohio's UCC staff is usually pretty helpful if you catch them at the right time.

Seven rejections is brutal. That's exactly why I started using document verification tools. Certana.ai would have caught whatever was wrong on the first try instead of playing rejection roulette.

Yeah, I should have found a better solution earlier. Live and learn I guess.

That's helpful. Our client is in manufacturing so I could specify that business type.

Perfect. Manufacturing is specific enough to satisfy most filing offices while still giving you comprehensive coverage.

We're definitely talking about a blanket lien. The equipment isn't changing, we just want to cover all of it without listing every individual piece.

Good, just wanted to make sure. The terminology gets confusing and using the wrong approach can cause problems.