Different loan types provide different risks and rewards. Once a UCC financing statement has been filed, different solutions are available to monitor collateral and assist secured parties in maintaining their perfected security interest. There are many lien types both voluntary and involuntary that, depending on jurisdiction, could potentially affect the perfected position, and Federal Tax liens are typically considered the most critical. Considering this landscape, secured parties choose which programs and processes to utilize to address the risks associated with their lending practices.
Of the various monitoring options available some provide deep insight into specific risks, such as IRS pre-lien tax assessment monitoring which provides lenders valuable information on their customers’ tax payment histories. Other monitoring options, like FCS Lien Monitoring, provide wider coverage over numerous potential risks to a perfected UCC, including prompt alerts on federal tax lien filings, state tax lien filings, junior UCCs, bankruptcies and corporate changes.
Depending on the credit risk, many lenders choose to blend collateral monitoring options, like the two described above, as complementary services to optimize coverage and mitigate the negative impact the varying lien types can pose to a perfected security interest.