UCC-1 Filing
A public notice a funder files with the state to record a security interest in your business assets or receivables.
A UCC-1 financing statement is a short public filing a funder makes with your Secretary of State under the Uniform Commercial Code. It puts other creditors on notice that the funder has a claim (a "security interest") in specific business assets — often your receivables or general business assets — while the funding is outstanding.
A UCC-1 is standard in commercial funding and, on its own, is not a judgment or a lien on your personal home. It is a notice filing. It does, however, establish priority: an earlier filing generally sits ahead of a later one, which is one reason stacking a second advance can be complicated — the new funder is often taking a junior position behind the first UCC-1.
When the funding is paid off, the funder should file a UCC-3 termination to release the filing. If you are shopping for new capital or a renewal, expect underwriters to check for open UCC filings, and ask any prior funder to terminate stale filings you have already satisfied.
Frequently asked
Does a UCC-1 filing hurt my credit score?
A UCC-1 is a public business filing, not a consumer credit event, so it does not directly change your personal FICO. It can, however, be seen by other business funders evaluating your file.
Can I still get funding if I already have a UCC-1 on file?
Often yes, but an existing filing affects position and can influence terms because a new funder may be in a junior spot. Disclose open filings up front so underwriting is accurate.
How is a UCC-1 removed?
Once the funding is satisfied, the funder files a UCC-3 termination to release it. If a paid-off filing lingers, ask the original funder to terminate it.
Related terms
Taking a second (or third) advance on top of an existing one, so multiple remittances hit the same deposits at the same time.
A promise by the business owner to be personally responsible for the obligation if the business cannot pay.
A clause where a business owner pre-agrees to a court judgment on default, waiving the right to contest it first.
A financing structure where a funder buys a set amount of your future sales at a discount today — a sale, not a loan.
Taking new capital from your existing funder — typically around 50% paid down — that pays off the current balance and adds funds on top.
See a real offer for your business
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