What is a UCC financing statement?

[jasminsain]

While researching business loans, I came across UCC financing statements. What is a UCC financing statement, and why do lenders file it?

 

[Rick_Grimes]

A UCC financing statement is a legal document that a lender files to show publicly that they have a security interest in the borrower's assets. It helps to determine the priority in case the borrower defaults or is insolvent.

 

[Oscar]

A UCC financing statement is a legal notice recorded publicly, which is a document used to indicate that a lender has security interest in the personal property of a borrower to secure a loan.

 

[Shane Warne]

A UCC financing statement is a legal document registered in order to publicly proclaim the security interest of a lender on the assets of a borrower to secure the lender in case of default by a borrower.

 

[Leo]

A UCC financing statement is a legal document filed to publicly record a lender’s claim (security interest) in a borrower’s personal property used as collateral for a loan.

 

[Oscar]

A United Commercial Code financing statement is a publicly recorded document that reveals a lender's security interest in the assets of a debtor, fixing the interest priority through the Uniform Commercial Code.

 

[John Smith]

A UCC financing statement (UCC-1) is a legal document filed by lenders to publicly declare their interest in a borrower’s assets. It protects creditors by establishing priority if the borrower defaults. Common in business loans, it lists collateral like equipment or inventory and is governed by the Uniform Commercial Code.