This Week’s Tip: Provide as Much Information as Possible to your Searcher for Offline Searches

In Part One of this series, we discussed online searching as a method for improving the turn-around time for state-level lien searches. While online searching at the state level is often a good choice for improving turn-around time, online resources are not the best choice for every type of search. Always remember to find out the source of the data prior to using any private online search system as third party data can include typographical and other data entry errors that jeopardize the integrity of your search result.

In addition, county-level lien searches on private search systems can also be unreliable due to irregular data collection practices and through date concerns. Therefore, some searches efforts are best completed as a manual (offline) search requests placed with your preferred vendor. In these cases, be sure to provide as much information as possible when initiating your search request. Here’s why.

When you place a search request with a vendor, the searcher scours the index for liens that match the basic target name you’ve provided, then eliminates all records they can based on a variety of criteria such as lapse dates, middle initials, social security numbers, etc. Any lien that cannot be eliminated is reported to you as a finding. Sorting through the initial search results takes time, particularly for common names or those with a lot of filing activity. If you have a middle initial or social security number for an individual, provide that when placing your order to speed up the elimination process. Please note, many filing offices are now redacting social security numbers from filings due to privacy concerns, but others still keep the last four digits on documents to help identify debtors.

Check back next week for another Tip for Improving Turn Around Time for Lien Searches!

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First Corporate Solutions is committed to providing our customers with anytime, anywhere access to the highest quality, most up-to-date search data available. To accomplish this, we purchase our data directly from the state filing offices and perform comprehensive analysis of the data prior to making it available for searching via www.ficoso.com. One of the areas we examine is the type of records present in the data and the number of active records for each.

Here is an overview of the lien types present in our newly launched Wisconsin data as of 1/4/2012:

Filing Type                                                                         Active Record Count

UCC Financing Statements and Amendments                     494,689

Judgment Liens                                                                                52

Notices of Lien for Fine                                                                 153

Federal Tax Lien Records                                                             18,042

Manufactured Home Filings                                                        1,249

Public Finance Transactions                                                       523

Railroad Filings                                                                                 18

Wage Claim Liens                                                                              8

Transmitting Utility Filings                                                          1,125

Not an FCS online system user?

Call or email today to schedule a free online demo! 800.406.1577 | info@ficoso.com

This Week’s Tip: Partner with an Online Service Provider for State-Level Lien Searches

Many variables can lengthen the processing time for a manual (offline) state search request. When working with an offline service provider, you are limited by that vendor’s hours of operation. If you place a search request with a vendor after their normal business hours, work will not commence on your search until they open for business the next day. Additionally, local filing office schedules, fluctuating work volumes at the filing offices and time zone differences can all work to slow down processing times for offline search requests.

One of the easiest and most effective ways to improve the turn-around time for your state-level searches is to self-search for liens using an online search system. Online search systems provide users with anytime, anywhere access to UCC and lien data. By partnering with an online service provider, you can perform state-level lien searches and receive immediate search results with copies, even after-hours.

As an added benefit, the fees for self-searching on a privately maintained online system are often much lower than those incurred for a comparable offline search.

A Cautionary Note About the Source of Data

If you are looking to make a move to an online solution, please keep in mind that an online search system is only as good as the data it contains. The most reliable and accurate online systems contain lien information that is purchased directly from the state filing offices, as these will closely match a state’s internal database.

Service companies can also purchase UCC and lien data from a Third Party Source. In these cases, a data collection company will obtain copies of UCC and lien records then transcribe and catalog the data in order to recreate a state’s internal database. This process opens the door for errors to be introduced into the data  that can compromise the integrity of your final search result.

The First Corporate Solutions online search system offers the most accurate and up-to-date state-direct lien information available anywhere, complemented by a comprehensive library of clear, downloadable document images. Contact First Corporate Solutions today to schedule a free demonstration 800.406.1577| info@ficoso.com

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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.

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Don’t Over-Search

One of the simplest ways to keep lien searching costs down is to be careful not to over-search. Note, First Corporate Solutions is not suggesting that you eliminate critical searches from your prefunding routine. What we mean is, be mindful to limit the searches you perform to only those that are necessary in order to evaluate risk and determine position.

Many times people are unsure about what to order and they are nervous about missing a lien, so they place a service request for EveryTHING EveryWHERE. To keep searching costs to a minimum, make sure that you are searching the right names, for the correct liens in the appropriate filing office.

Self-Search

To drive down costs, try working with a UCC provider that offers a web-based search system. The fees for self-searching on a private online search system are often much lower than those incurred for a manual search of the same records. As an added benefit, many online search systems offer broad-based searching features such as wildcard characters or truncated search logic to help reveal name variations. Broad-based name searching helps reduce search costs by enabling searchers to combine similar names onto a single search report rather than paying separately for each.

Watch Copy Costs

Most public record search companies charge a per page fee for copies of lien documents that accompany your search report. Active names can generate hundreds of dollars in copies that may not even be relevant to your deal. In cases where your search name is common or you anticipate a large number of hits, you may want to order a “listing only” search to start. Then you can review the report and order copies of only those documents that are pertinent to your transaction.

For more tips on reducing copy costs for your lien searches, refer to our blog post, “Keeping Copy Costs Down for Your UCC & Lien Searches.”

Check back next week for our blog post on cost saving strategies for UCC filings!

*Disclaimer

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.

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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

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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!

*Disclaimer

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.

*Disclaimer

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

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