On average, Americans hold more than $90,000 in debt. There are different ways to get out of debt, but it’s critical that you pick a strategy and execute it to the best of your ability.
Good debt can be used as a strategy to help your business interests. When you’re applying for a business loan that requires any type of collateral, a UCC filing might be in order.
The points below teach you all about UCC 3, what it is, and how it can apply in your situation.
What Is UCC 3?
Uniform Commercial Code (UCC) refers to a type of filing that is handled when someone is attempting to take out a business loan. It places a lien against assets that the applicant is pledging in order to receive the loan.
When the loan holder files the lien, it secures the assets so that they can’t be sold or transferred during the borrowing process. It’s a lien that will last 5 years and provides some recourse in the event that the borrower defaults on the agreement.
A UCC 3 filing is in place to make amendments to the original UCC filing.
Consider the Different Types
There are many reasons that you might need to make amendments to a UCC filing. Understanding the different types of UCC 3 filings will help you out so that you’re handling it correctly and getting the result that you need.
Here are a few different amendments and UCC 3 types that you should consider:
- Making changes to or adding a description of collateral
- Transferring rights to another party
- Extending the timetable that liens and other parts of the agreement are in effect
- Amending the party or parties involved
- Changing assignments on the contract
Keep the information from the original agreement for your records so that you’re handling the UCC 3 with accuracy. You’ll need the name and address to stay intact, along with the filing number.
Make sure that you also understand when a UCC filing is applicable so that you’re more likely to get it approved and avoid rejections that can create setbacks.
Learn How to Handle a UCC 3 Filing
Make sure that all of your ducks are in a row when you’re putting together your filing. Include all required application fees so that your paperwork stays on track and doesn’t get bounced back to you. For a one to two-page application, the application fee is approximately $6. Anything more than two pages will cost you $12.
The filing will last for 5 years, and any amendment can be extended for another 5 years. Double and triple-check the paperwork to make certain that every piece of information is in the right place, and so that you are able to handle it correctly.
Use this resource on ucc3 change statements to make sure you’re up to date.
What Is UCC Filing?
These tips explain UCC 3 so that you can move forward with one if it suits you. If you are in the market for any kind of business loan that requires collateral, you will be in a good position to do so with the information above.
We’re also happy to help you when you need up-to-date information on a variety of topics. Check out our other articles to learn more about business, finance, and more.