Guidance for businesses already in default on MCA obligations.
A UCC-1 financing statement is a legal notice filed by a lender that establishes a security interest in a business's collateral. It becomes part of the public record and alerts other creditors that assets may already be pledged.
A UCC filing generally does not appear on consumer credit reports. However, lenders frequently review UCC records during underwriting. Existing liens may affect your ability to obtain new financing.
Yes. Once an obligation has been satisfied, the secured party typically files a UCC-3 Termination Statement to release the lien. If a lien remains after the debt has been paid, contact the secured party and request that the termination be filed.
Search your state's official UCC database using your legal business name. Many merchant cash advance providers file blanket UCC-1 financing statements shortly after funding.
Finding a UCC filing doesn't necessarily mean you cannot obtain financing, but it may affect your options. Understanding who filed the lien, what assets are covered, and whether the filing is still active can help you evaluate your next steps.
