12/10/2023 0 Comments Aqua finance payoff![]() Login now and enroll to set up your recurring payments immediately.Complete one of the following options to enroll: It’s a mistake which might cost you a loan approval.Save time and postage by having your monthly payment automatically debited from your bank account. Whatever you do, don’t wait until the last minute to try to correct an outdated UCC filing. If you plan to apply for new business financing soon, it’s wise to make sure you’re well-prepared for the loan application in advance. Don’t Wait Until the Last MinuteĬhanges to your business credit reports and your state’s public records take time. Keep in mind, however, there is no federal law requiring they do so. If you discover an outdated UCC filing on your credit reports which has already been released, you can dispute the mistake and ask the business credit reporting agencies to remove it from your reports. It’s a smart idea to keep tabs on your three major business credit reports and scores from Dun & Bradstreet, Experian, and Equifax. Dispute inaccurate information on your business credit reports. Once there, you will be able to swear under oath that you’ve satisfied the debt in full and wish to request for the UCC-1 filing to be removed. To do so you will generally need to make a trip in person down to your secretary of state’s office. If your lender fails to file a UCC-3 form after you satisfy a debt, another option you may consider is making the request yourself. Dun & Bradstreet, for example, will not remove a closed UCC filing until receiving a request from a customer or until the lien has been inactive for 11 years - whichever occurs first. Note: this may or may not trigger the removal of the UCC filing from your business credit reports. The UCC-3 will terminate the lien on your company’s asset (or assets) and remove the UCC-1 filing. When you pay off a loan, a good rule of thumb is to immediately submit a request with the lender to file a UCC-3 form with your secretary of state. Ask the lender to terminate the lien upon payoff. If you discover an outstanding UCC lien which is still in place after you satisfy a debt, here are some steps you can take to remove the UCC filing: 1. You can check your business credit reports and your secretary of state’s website to search for UCC filings against your company. You might satisfy a debt in full yet discover that the UCC-1 filing remains in place. Unfortunately, it doesn’t always work that way. In a perfect world, a lender should remove a UCC-1 whenever you pay off the debt associated with it. See My Options Ways to Remove a UCC Filing Know what business financing you can qualify for before you apply, with Nav. Instantly, compare your best financial options based on your unique business data. Spend more time crushing goals than crunching numbers. You can learn more about UCC filings here. In the event of default, the lender who submitted the second UCC filing would only be able to recuperate funds from the sale of any collateral after the first lender has had the opportunity to do so. This is an important consideration because the lender with the oldest UCC-1 filing legally has the first claim on the assets. It signifies that you already owe money to another lender and that your assets are already committed to someone else. Why? Because an existing UCC-1 filing may increase your company’s credit risk from a lending perspective. Nonetheless, future lenders might be hesitant to approve applications for additional credit until you satisfy your existing lien(s). UCC liens aren’t unusual in the world of business financing and, unlike liens on your personal credit, a UCC filing doesn’t indicate that you’ve done anything wrong. Therefore, even if a UCC lien doesn’t show up on your business credit reports for some reason, it might still come up if you apply for new business financing. Keep in mind that UCC filings are public records. (Remember, you can check your business credit reports and scores with Nav.) This might be a piece of equipment, a vehicle, property, or even a blanket lien naming all your assets.Ī UCC-1 protects a lender’s interests for five years (unless the lender refiles) and will typically be included on your business credit reports. When you take out a secured loan, the lender may file a lien to protect the asset(s) you committed to secure financing. See My Scores What Is a UCC Filing?Ī UCC filing, also known as a UCC lien or a UCC-1, is a financing statement which lenders can file against your business with your secretary of state. Get started with Nav and stay up to date with your business credit reports and ratings.
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