Business owners can use a Merchant Cash Advance (MCA) to quickly get funds to help cover the cost of business operations. When the business owner gets an MCA, the lender may file a UCC-1 financing statement. This public record indicates that the lender has an interest...
Owners of small businesses face repossession threats from Merchant Cash Advance (MCA) providers when they default on payments. Soon after, providers can enforce a Uniform Commercial Code (UCC) lien on businesses to freeze, repossess and liquidate collaterals. When...
A Universal Commercial Code (UCC) lien is essentially a claim made by a lender on a borrower's assets until the loan is fully repaid. When you take out a secured loan or use equipment financing, the creditor files this lien establishing its right to repossess the...
As part of your agreement to acquire a secured loan, the lender likely filed a UCC-1 against your business with the New York secretary of state. Consider it a safety measure for the lender, allowing them to claim interest on the assets you pledged as collateral. The...
It is a common practice for business owners to have UCC liens on their properties or assets after taking out MCAs. It can be essential when establishing the agreement to protect the lender from losses if the debtor fails to repay the advance. However, the debtor may...
Most types of New York businesses, including manufacturers, restaurants and convenience stores, rely on their equipment. Machinery like ovens, freezers and machine tools let you and your employees provide customers with the goods and services you promise them. Over...
As we have discussed before in this blog, a merchant cash advance (MCA) is a type of cash advance for small businesses that cannot obtain traditional credit. The advancing company gives the cash to the debtor in exchange for a fixed percentage of the debtor's daily...
A UCC lien is a very common result of a business taking out a merchant cash advance (MCA) or other secured loan. The lender files a UCC report to let other potential creditors know that the business has already leveraged some or all of its assets. While it is not...
Most lenders prefer to secure their loans against something substantial that belongs to the borrower. A mortgage is secured by the property being purchased, an auto loan is secured by the vehicle and so on. So it is with most business loans. The lender wants some...