A UCC filing on a business is often made to create a lien against property or assets used as collateral.  Typically, a UCC filing is required to secure private financing, but is also used to protect the sales of goods and merchandise sold to a customer.  UCC filings can be used within your own state jurisdiction or across state lines for all commercial transactions. It’s a form of protection for any and all transactions to insure the vendor, or creditor receives payments for goods rendered.

Is a UCC filing a form of lien against a legal entity?

A UCC filing is a legal notice a lender or product supplier files with the secretary of state when they have a security interest against another businesses assets. It gives notice that the lender or supplier has an interest, or lien, against the asset being used by the customer to operate their business.

The term “UCC filing” comes from the “uniform commercial code.”

How long are UCC filings good for?

The UCC’s general rule is that a financing statement remains valid for a period of five years from the date of filing.  If a continuation statement is not refiled to extend the UCC before the five year expiration deadline, the effectiveness of the financing statement will lapse. Therefore, it must be periodically renewed.

Who should file UCC’s for my company?

All UCC’s should be filed by an individual with specialized training in this very important task. Each state has their own guidelines, directives and procedures. If there are any errors in the filing process or paperwork, it nullifies the protection being sought.

How do UCC filings work?

UCC filings are forms submitted by creditors to insure payments against assets, goods and merchandise.  Creditors give public notice of their interest in business assets when a business purchases goods, merchandise or takes out a secured loan. A creditor will file a financing statement, or a UCC-1 form, in order to perfect its security interest in the whatever type of collateral.

What’s the purpose of general UCC filings?

If you are filing against your customers assets, this insures they don’t close their doors, sell the business or file for bankruptcy without you being included in the financial distribution. For example, if they were to transfer assets to another party through a sale, your company might loose the right to collect. In other words, you’re insuring an umbrella of protection against possible non-payment. If a customer goes through an undisclosed transitional phase leaving your company may be exposed to significant financial losses of  income.

If my company has business clients in other states, can you provide UCC filings in those states as well?

Yes, we can file the appropriate electronic documents in all 50 United States of America.

When should my company begin hiring Arizona Premier Bookkeeping, LLC to file UCC filings for us?

As soon as the relationship between the two parties, the seller of goods and customer buying those goods begins, an umbrella filing should take place.  This is not a punitive action, rather a protective, long term strategy insuring ongoing payments to avoid unexpected losses.

If my company has existing business, would it be appropriate to create UCC filings now?

Yes, you can hire us to create new documents going forward.

Are filings of this type retroactive?

Yes, they can be retroactive on outstanding unpaid invoices. Once outstanding invoices are paid, those invoices are no longer covered, while new current invoices are protected.