Business borrowers with a verified, history of UCC filings represent excellent prospects for financial institutions, lenders, creditors and business equipment vendors.
A Uniform Commercial Code filing, also known as a UCC filing, is a document that lenders use to establish their legal right to assets that a borrower uses to secure a loan. This notice allows the lender to seize the borrower’s collateral in the case of default.
UCC filings can cover a specific piece of collateral, or lenders can file a blanket lien, which applies to all of a borrower’s assets. Filing a UCC lien is a common practice among lenders when they issue small-business loans.
UCC liens can be filed on a range of personal and/or business assets, including but not limited to real estate, inventory, receivables, vehicles, machinery and equipment.
Why UCC filings are great prospects
Businesses with UCC (Uniform Commercial Code) filings can be considered great prospects for various reasons, primarily from the perspective of lenders, creditors, and financial institutions. Here's why they are often seen as attractive targets:
Active Borrowing Activity:
UCC filings typically indicate that a business has recently taken out a loan or secured financing. This can be a strong signal that the business has a need for capital, which presents opportunities for financial institutions to offer additional lending or financial services.
Potential for Cross-Selling:
When a business has an existing UCC filing, it may require a range of financial services beyond just loans, such as credit lines, equipment financing, or merchant services. Financial institutions can use this as an opportunity to cross-sell a variety of products and services to meet the business's needs.
Established Business Relationships:
Having a UCC filing suggests that a business has an established relationship with a financial institution or lender. This relationship can be leveraged to build trust and explore further financial solutions or partnership opportunities.
Risk Assessment:
UCC filings provide valuable information about a business's creditworthiness and financial health. By reviewing UCC filings, financial institutions can assess the risk associated with a particular business and make informed decisions regarding lending terms and interest rates.
Secured Collateral:
UCC filings are often associated with specific collateral or assets used as security for a loan. This collateral can serve as a safety net for lenders, making it less risky to extend additional credit or financial services to the business.
Timing for Refinancing:
Businesses with UCC filings may seek refinancing options to improve their terms, extend credit lines, or consolidate debt. Financial institutions can approach these businesses with refinancing offers at the right time.
Industry and Market Insights: UCC filings also provide insights into specific industries and market segments. Financial institutions can use this data to target businesses in sectors that are currently thriving or have growth potential.
Compliance Monitoring: For financial institutions, monitoring UCC filings can help ensure that their interests are protected and that borrowers remain in compliance with loan agreements. It allows lenders to take action if a borrower defaults on their obligations.
Businesses with UCC filings can be attractive prospects for financial institutions. They may also be experiencing financial challenges or seeking to restructure their debt. Knowing that these businesses have open liens also means the business is active and can be reached by mail, phone or email.
Our Business database has information on 39 million UCC filings. Available Selects Include:
UCC Lists are offered by Dataman Group Direct, in Boca Raton, FL. Call (800) 771-3282
