Taking on in-house UCC filing can be a great way to protect your assets and maintain control over your accounts. You know the value of having your assets secured with a UCC-1 filing. However, it can also be fraught with risk in several different areas, including:
- Errors in the debtor’s name: The smallest difference in how a name is documented can cause a mountain of problems and even result in financial losses.
- Inconsistent and differing processes that vary by state: The Uniform Commercial Code (UCC) for UCC filings is not consistent across all 50 states; the processes also vary by state. Further, if you need to perform filings at the county level, be aware that there are more than 3,600 jurisdictions and their requirements can differ from county to county.
- The volume and speed of transactions that you must process: In an ideal world the volume you must process is always the same — but in reality there are times when the volume of liens may exceed your capacity.
What you gain by partnering with a service provider
Growing complexity in the modern financial landscape means that filing your UCC forms correctly and in a timely manner is essential. Going at it alone leaves you open to potential errors, such as:
- Process automation tools: Reduce inefficiencies and keying errors. Keying errors render liens unperfected and leave you unprotected.
- Customer support: Your teams won’t be stretched thin. They will have someone to call and ask questions about jurisdictional requirements.
- Central point of access: One system will keep up with all the liens you have filed. It will let you know when a lien is about to expire.
Get help from professionals
Aligning with a partner like Lien Solutions can bring single-point access to all jurisdictions, correct use of names and other information on UCC filings, as well as the ability to manage every lien in a portfolio for its entire life cycle.
We work with businesses of all sizes to mitigate risk and ensure the correctness of UCC forms before submission. Drop us a line with any questions or with a request to speak to a lien management expert.
To ensure that your filing is done correctly, and you are operating efficiently as a self-filer, you need to understand the risks you might face and how you can address them.