Business owners are no strangers to navigating financial challenges. These can involve merchant cash advances (MCAs) and Uniform Commercial Code (UCC) liens.
UCC liens are governed by Article 9 of the UCC, which provides a framework for secured transactions such as taking out an MCA. A lien is a security interest in the business assets of a borrower that a lender can use to secure payment in the event of default. If you are struggling to manage a UCC lien issue, you may be wondering when to seek help.
Signs that help is needed
Your UCC lien issue can quickly spiral out of control if you do not address it properly. The indicators that suggest you may need assistance include:
- Enforcement actions: The lender is taking enforcement actions such as freezing business bank accounts or seizing assets. This can significantly affect operations.
- Foreclosure proceedings: The lender has initiated foreclosure proceedings. This can lead to the loss of valuable assets and can have long-term consequences for your business.
- Aggressive communication: You may be receiving frequent and aggressive communication from the lender. This can include incessant phone calls, emails or letters, which can be stressful and distracting.
- Financial distress: You may also be experiencing financial distress because of the UCC lien issue. This can involve cash flow problems, reduced revenue or an inability to meet financial obligations.
As someone facing a UCC lien issue, it is essential to take immediate action. Consulting with a business analyst or financial adviser may help you understand the situation of your business and mitigate potential damage.
Developing a strategy that protects your interests
A UCC lien issue can be a daunting obstacle with severe consequences. By seeking legal guidance, you may know the available options and develop a strategy that protects your business interests. Also, having legal counsel may help you safeguard your rights throughout the process.