Dollar IconThe recession’s impact on the lending community has prompted many UCC filers to take a good hard look at their budgets in search of meaningful ways to reduce spending and increase profitability. As a result, First Corporate Solutions has seen a rise in the question, “How can I reduce my UCC filing costs?”

When you think about it, this is not an easy question to answer. UCC filers face the tough task of finding ways to cut costs intelligently, without sacrificing quality, jeopardizing priority or increasing their risk.

Here are a few small changes UCC filers can make that really add up:

Use Attachment Pages Thoughtfully

In most filing offices, including attachment pages will increase a document’s filing fee. Whenever feasible, fit your collateral description within the defined box on the UCC1 form. If your transaction requires a lengthy equipment or inventory list then you are probably unable to take advantage of this savings, but if your UCC needs only a short blanket statement, why not include it on the face page rather than pay extra for an attachment?

File Electronically

These days, most state filing offices and even some county jurisdictions allow for electronic filing of documents. The filing fee is often substantially lower for a document that is submitted electronically versus manual “over the counter” submission. In some cases, the electronic filing fee is a mere fraction of the manual filing charge.

To take advantage of the significant cost savings of filing electronically, consider working with a UCC service provider that maintains a private online filing system designed to transmit filings using the most efficient and affordable technology. As an added benefit, many online solutions include portfolio management and UCC tracking features.

Reduce Rejections

Rejected filings are costly for UCC filers in both time and money. A rejected UCC necessitates the preparation and shipment of an amended document and extends the funding cycle – opening the door for a competing claim to secure a priority position. 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.

For more tips on how to avoid rejections, see our previous blog posts:

Common Mistakes on UCC1 Financing Statements

Common Mistakes on UCC3 Change Statements



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One thought on “FAQ Series # 3: How can I reduce my UCC filing costs?

  • May 4, 2010 at 11:03 pm

    A lot of states charge more if you use a non-standard form too. I always check the state website first to make sure I’m filing on their approved form.


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