Tips for Reducing UCC Filing Costs
As 2011 draws to a close, First Corporate Solutions is taking to our blog to offer suggestions for how our readers can decrease their spending for due diligence related tasks in the upcoming year. Last week, we discussed strategies for reducing the costs for lien searches while this week we tackle UCC filings. Herein, we share a couple of simple changes you can make to reduce your UCC filing costs.
File Electronically
One of the most effective ways to reduce UCC filing costs is to file electronically. The filing fee for an electronically filed UCC document is often substantially lower than the fee to file the same document using traditional “over the counter” service. Electronic filing (aka E-Filing) is now available in most states and there are a couple of different ways to get your document on record electronically.
One common way to E-File a UCC document is by visiting a state filing office’s website and inputting debtor, secured party and collateral information into their online UCC filing system. Many states now offer this feature and users can pay either by using a credit card or by establishing a pre-paid account. This method is particularly useful for those who have infrequent filing needs.
For high-volume UCC filers, an even better E-Filing solution is to file electronically using a private service company’s web-based filing system. These systems use xml technology to transfer data directly to the state filing office. In some cases, the xml filing fee is a mere fraction of the manual filing charge. As an added benefit, many online filing systems include portfolio management tools to help you keep track of all of your UCC filing activity.
Reduce Rejections
Another simple way to drive down UCC filing costs is to reduce your number or rejected filings since the process of correcting and resubmitting a UCC document can get pretty expensive. In many states, the filing office will retain a portion of the filing fee for a rejected document. And if you work with a service provider to submit UCC documents on your behalf, they may charge a rejected filing fee or special handling charge to process your rejected document.
There is also the cost of labor to consider. When a filing office rejects your UCC document, it then requires more of your time to track down the correct information, make the change to the document and resubmit it to the filing office. This is time you or your staff could spend on other, more profitable tasks.
To reduce your number of rejected filings, try utilizing a service company that will perform a thorough quality review of your UCC filings prior to submission.
Mark your Calendar!
On March 15, 2012, First Corporate Solutions will be hosting a FREE webinar event, “An Insider’s Guide to Reducing Due Diligence Costs.” Check back on the blog or look to our website at www.ficoso.com for registration information as the event date approaches.
Answers to Common UCC Filing Questions Series: Part Four
This month, First Corporate Solutions decided to take to the blog to answer a few of our most commonly asked questions regarding UCC filings. Each week we have been posting 2-3 questions posed by First Corporate Solutions customers and prospects. This week represents our final blog post in the UCC Filing Questions Series.
Here are this week’s questions and answers:
Question: I’ve noticed that some states insert zeroes or a filing year in front of the filing number when they index it, so the number on my acknowledgement copy does not match what they have in their records. When preparing a UCC3, is it safer to mirror the filing office’s stamp, or conform to the state’s indexed format?
Answer: In most cases, mirroring the formatting from the filed UCC1 document will allow your document to be filed. If you are in doubt, try consulting the state’s website for tips on how to format the original file number.
Question: The UCC Financing Statement form asks me to fill in an organizational ID for my debtor. What is an organizational ID number?
Answer: Many state filing offices assign a business entity a registration number upon filing of their articles of incorporation or other organizing documents. In these states, the filing office places the organizational ID (typically via stamp or sticker) on the filed copy of the documents much like a filing number for a UCC filing. Reproductions of these documents will include the organizational ID.
Please note some states do not issue an organizational ID for a registered business. When preparing a UCC Financing Statement on a business debtor for filing in these states, you can check the box that states “none” in item 1g on the form.
Have a question about UCC Filing that you would like to have answered on our blog? Email First Corporate Solutions at info@ficoso.com.
Online UCC and Lien System Upgrade: First Corporate Solutions Releases Indiana Online UCC Search Database with Document Images
We are pleased to announce that we have released Indiana to our online search system.
Active users can log on now to www.ficoso.com and search our reliable state-direct Indiana data complemented by an expansive library of clear, downloadable document images.
Utilize our broad-based search engine to locate liens by debtor name or file number, then use our unique sorting and filtering features to create a customized search result, tailor made for your specific transaction. Online search history is saved for a period of 90 days for quick access to completed searches and associated images.
For more information, check out the following blog posts and explore the benefits of using an online UCC & lien search system:
Broad Based Name Searching: What is it? Why is it Important?
Why Name Variations Matter in UCC Searching
Not an FCS online user?
Find out more about our UCC Online Search System
Call or email today to schedule a free online demo! 800.406.1577 | info@ficoso.com
Recap: Commercial Finance Association Annual Convention in New York City
First Corporate Solutions (FCS) exhibited at the 67th Annual Commercial Finance Association Convention in New York City earlier this month.
The Commercial Finance Association (CFA) is an international trade association serving the asset-based lending and factoring communities. The Annual Convention is the premier event for the CFA, providing networking opportunities, educational sessions and inspirational speakers for its members. Highlights of this year’s event included an educational session on the future of factoring, an alternative financing forum, a panel discussion on international asset-based lending and an address by keynote speaker, Dr. Robert M. Gates, former U.S. Secretary of Defense.
FCS has a long-standing relationship with the CFA as a leading provider of UCC and corporate due diligence solutions to commercial lenders, including FCS’ innovative state and county Account Monitoring program designed specifically to mitigate risk for factors and asset-based lenders.
Our partnership expanded in 2010 when First Corporate Solutions began presenting educational webinars on due diligence related topics for CFA members. To date, First Corporate Solutions has delivered several webinars on topics including UCC filing mistakes, effective lien searching and reducing due diligence costs.
Conference attendees were impressed with the First Corporate Solutions portfolio of services, particularly our State and County Account Monitoring Program integrated with CADENCE|FactorSoft. We had a great time at the show and enjoyed reconnecting with those of you we know and meeting many of your for the first time.
First Corporate Solutions asked attendees to visit their booth to enter to win a drawing to win a new Amazon Kindle Fire. We are pleased to announce the winner here on our blog – Congratulations Deborah Monosson of Boston Financial & Equity Corporation, your Amazon Kindle Fire is on its way!
Answers to Common UCC Filing Questions Series: Part Three
First Corporate Solutions sales representatives and service staff are asked a lot questions about UCC filings. This month, First Corporate Solutions decided to take to the blog to answer some of our most commonly asked questions regarding UCC filings. Each week this month we have been posting 2-3 questions posed by First Corporate Solutions customers and prospects. See here and here for our previous UCC Filing Questions posts.
Here are this week’s questions and answers:
QUESTION: We were recently asked to file a UCC-1 for information purposes only, simply to clarify the relationship between a lessor and lessee. Is this common? Is it recommended?
ANSWER: This is a fairly common practice, in fact the UCC Financing Statement National From includes a section to indicate alternative designations, including the lessee/lessor relationship as well as a non-UCC filing notation. It is always best practice to speak with your legal counsel or risk management department to determine recommended best practices specific to your transaction.
QUESTION: Can I file my UCC on a “dba” name?
ANSWER: You can, but keep in mind that according to the Uniform Commercial Code, filing under a trade name (dba) alone is not sufficient to perfect a security interest. In order to perfect, a secured party must file under the legal name of the debtor; a “dba” name does not constitute a legal name. A secured party may file under both the legal name and the trade name if they wish.
Please refer to our previous blog post, Omit “dba” Notation From UCC Filings, for more information on how best to list debtor names when filing under a legal name and a “dba” name.
Have a question about UCC Filing that you would like to have answered on our blog? Email First Corporate Solutions at info@ficoso.com.
Answers to Common UCC Filing Questions Series: Part Two
As public records experts, First Corporate Solutions encounters a lot of questions about UCC filings. This month we have decided to take to the blog to answer some of our most commonly asked questions regarding UCC filings. Each week this month, we will post 2-3 questions posed by First Corporate Solutions customers and prospects.
Check last week’s post for answers to three of the most commonly asked questions http://blog.ficoso.com/2011/11/03/answers-to-common-ucc-filing-questions-series-part-one/ and keep reading for this week’s questions and answers!
QUESTION: Does punctuation matter for a debtor name on a UCC filing? Can something like a period or comma cause issues with UCC filings?
ANSWER: A filing officer will not reject a document for a punctuation error, but it could potentially cause the name not to be found later as part of a UCC search effort. Each state independently implements its own search logic. Most states have adopted a version of the International Association of Commercial Administrator’s Model Administrative Rules for UCC searching which disregards punctuation, but some states are more strict than others. A UCC document that cannot be found using the State’s Standard Search Logic could be deemed seriously misleading if there is ever a competing claim. To protect your interests, it is best practice to review a business entity’s formation documents and input your debtor name exactly as the name appears in the charter, including punctuation.
QUESTION: If I am not 100% sure of a debtor’s name, and cannot get access to their organizational documents, can I file a UCC1 using eight different versions of the debtor’s name?
ANSWER: Yes, but keep in mind that many filing offices calculate a document’s filing fee based on the number of debtors it contains.
Have a question about UCC Filing that you would like to have answered on our blog? Email First Corporate Solutions at info@ficoso.com.
To learn more about UCC filing, join us on November 17, 2011 at 11:00 am Pacific for a FREE encore presentation of our popular webinar, “An Insider’s Guide to Avoiding UCC filing Mistakes.” Registration is now open at https://www1.gotomeeting.com/register/535633216
