Are you a business owner in New York? Have you ever wondered about uniform commercial code (UCC) liens and what assets a creditor could potentially claim? If you have, then you’re most likely in a similar situation.
There’s no shame in taking advantage of quick capital solutions like merchant cash advances (MCAs) or business loans. But it’s important to understand that when you secure these forms of funding, creditors can place UCC liens on your assets.
Understanding this crucial fact is essential to avoid falling into a deeper financial hole.
Assets that can be included in a UCC lien
UCC liens are a reality that many have to face. This lien is a claim that a creditor can make on a debtor’s assets if the debtor fails to repay a debt. In New York, these liens can include a wide array of assets. Typically, assets subject to a UCC lien include tangible and intangible assets.
Tangible assets refer to physical items that business owners use for their company, like:
- Equipment
- Inventory
- Vehicles
These are all assets that a creditor can stake a claim on through a UCC lien. Being aware of these potential liabilities can help you strategize your financial plan more effectively.
On the other end are intangible assets. These include:
- Accounts receivable
- Patents
- Trademarks
Even these non-physical assets can be included in a UCC lien. Knowing what can be included in a UCC lien can help you better grasp the potential impact on your business. This can also prevent unexpected surprises and ensure you’re prepared for all possibilities.
You should secure help immediately
If you find yourself facing a UCC lien, it’s essential to act quickly. The financial implications can be far-reaching and potentially devastating for your business. You need someone in your corner who understands the complexities of New York law and can advocate for your best interests.
A legal professional can help you with your specific circumstances. They can explain your options, help develop a strategy and work toward a resolution that minimizes the impact on your business. It’s crucial not to delay and seek help as soon as possible to protect your business and its assets.