April Fools Day and your UCC filing!

Every year I have this competition with my Mom on April fools day, she tries to get me and I try to get her.

Oh come on, no way can you fall for an April fools joke every year knowing it is coming. Well every year I think that, but some how she always seems to set the trap and I step right in the middle of it. I spend all day avoiding the snare and before you know it I am hanging upside down, dangling from the rope as we both howl in laughter at my annual defeat!

What does this have to do with my UCC filing you ask? Well let me tell you:

Just like my annual defeat at the hands of my Mom, several times a year we experience an April fools joke in the Factoring industry, and it is not always April.

To Factor your receivables, the Factoring company must have a UCC-1 on your Accounts Receivable. We will ask up front if any financing is currently in place. Many times the answer will be yes and we will ask if the Accounts Receivable are pledged as collateral (UCC-1) and the answer will be a no.

A search will be done for liens and APRIL FOOLS a UCC-1 will show that there is indeed a lien against the Accounts Receivable.

Now, I am not implying this was done intentionally. The applicant was not aware that the bank applied a blanket lien to cover the loan or loc.

If you currently have a loan or loc in place and still need additional working capital, Factoring can be the solution you need. Just double check your UCC filing to make sure your receivables are available, it can save you much hassle.

Please take note that a UCC-1 against your Accounts Receivable does not mean you will not be able to Factor. A subordination (release) or a buy out is done on a daily bases in the Factoring industry. Knowing this up front however will help the Factoring company better determine your chances of this.

Get a Free Factoring Quote today Click for free Quote

Want to speak to me personally 888-603-0055

Thanks for Reading!