Having a uniform commercial code (UCC) lien can feel like a weight on your business’s shoulders, especially if you’re operating in the bustling state of New York. It can be quite a challenge to understand how to resolve this issue and get your business back on track.
But, don’t worry. The good news is there are clear steps you can take.
Ways to remove a UCC lien
First off, it’s important to understand that only the lender, or the lienholder, can remove a UCC lien. Typically, this happens once you’ve managed to repay or settle the loan. However, if your loan term extends beyond five years, your lender may choose to renew the lien.
To prevent this from happening, it’s crucial to work towards repayment before hitting that five-year mark. Here are some strategies to consider:
- Establish a payment plan: Working with your lender to establish a payment plan that suits your financial capabilities can help reduce the burden of repayment.
- Negotiating with the lender: You may be able to negotiate terms with your current lender to make repayment more manageable. This could involve adjusting your payment schedule or, in some cases, reducing the overall debt.
- Seeking investors: Another option could be seeking investors to infuse some capital into your business. This could help to pay off the debt quicker.
While you can’t directly request the removal of the lien, you can aim for repayment. By working towards these steps, you’ll be taking control of your financial health and moving closer to the resolution of the UCC lien.
Seek help to recover your business
Remember that you don’t have to face this challenging time alone. In these situations, you should consider seeking a legal professional. They can help you understand your rights, negotiate with your lenders and guide you through dealing with a UCC lien. They can also take steps to protect your business from further financial strain.