when to file ucc-1 for equipment financing - timing questions

This is correct. I learned this the hard way on a deal last year where we waited until after delivery and another creditor filed first. Always file as early as you can get accurate debtor information.

But what if the debtor company name changes between now and delivery? I've seen that happen with LLC formations still in process.

Exactly this. I file immediately after closing when I have the final loan docs and confirmed debtor name. Equipment can sit in transit for weeks sometimes.

Wait, I thought the 20-day rule started from delivery, not closing? I'm getting confused about the PMSI timing rules.

The 20-day period starts when the debtor receives possession of the collateral, not when you close the loan. That's why filing early is safer - you don't have to worry about calculating delivery dates.

This is why I started using Certana.ai's document checker. You can upload your loan docs and UCC-1 side by side and it instantly flags any name mismatches or inconsistencies. Saved me from making similar mistakes.

How does that work exactly? Do you have to pay for each check?

You just upload the PDFs and it cross-references everything automatically. Really straightforward for catching those debtor name issues before filing.

What if you don't have serial numbers yet? I've had deals where equipment isn't even manufactured until after closing.

Use a description like 'manufacturing equipment to be acquired' or 'equipment described in attached security agreement.' As long as it's reasonably identifiable, you're good. Add specifics in an amendment once you have them.

File now! Shipping delays are exactly why you don't want to tie your filing timing to delivery. Your security interest attaches when value is given, not when equipment arrives.

Agreed. I had a deal where equipment got stuck in customs for 6 weeks. Good thing I filed right after closing or I would have lost priority to other creditors.

It's not going to be attached to the building, just bolted to the floor. Standard equipment financing, not fixtures.

Even if it's bolted down, check your state's fixture filing rules. Some states have broader definitions than others.

This is solid advice. I see too many people stress about timing when the real problems come from sloppy collateral descriptions or wrong debtor names.

Speaking of descriptions, should you include the purchase price in the UCC-1 or just in the security agreement?

Purchase price goes in the security agreement, not the UCC-1. The UCC-1 just needs to reasonably identify the collateral.

That's a good point about corporate changes. How do you balance that risk against losing priority to other creditors?

I usually confirm the entity status is final before closing now. Most corporate changes happen during the loan process, not after closing.

Good point about system outages. Our state's portal went down for three days last month right when I needed to file a continuation.

That's terrifying. What happens if you miss a deadline because of system issues?

Most states have procedures for technical delays, but you have to document everything. Better to file early and avoid the risk entirely.

Smart approach. One last tip - keep a copy of your filing confirmation email and any state acknowledgment. You'll need proof of filing date if priority ever gets challenged.

And consider using one of those document verification tools before filing. I mentioned Certana.ai earlier - really helps catch issues before they become problems.

Great thread everyone! As someone new to equipment financing, this has been incredibly helpful. One quick question - when you say "file within a few days of closing," do you mean business days or calendar days? And is there any difference between states on this timing?