USNews: “What Is a UCC Filing and How Does It Affect My Credit?”
US News & World Report, March 1, 2022 — Marguerita Cheng, CFP® Pro, is featured in today’s article in US News by Ben Luthi, who explains: “As a small-business owner, obtaining capital to build your business is a top priority. But when you get a loan, you may notice something new on your credit reports in addition to the credit account: a UCC filing. When commercial lenders offer financing to small businesses, they often require collateral to secure the loan amount. To make things official, they’ll add what’s called a UCC filing – the abbreviation stands for Uniform Commercial Code – to your business credit reports. A UCC filing won’t necessarily impact your business credit, but it may affect your ability to obtain more financing in the future. Here’s what you need to know about a UCC filing and your business.”
He turned to Marguerita to learn how to remove a UCC Filing: “As a small-business owner, it’s crucial that you review your business credit reports regularly,” Marguerita said. “If you notice that a UCC filing remains on your reports even after you’ve paid off the underlying debt, there are a couple of actions you can contact the lender. Your first option is to contact your past creditor and ask it to remove the UCC-1 statement by filing a UCC-3 statement with the local secretary of state office. “Upon receipt of your request, the lender has 20 days to file a termination statement for the UCC filing in question.”