UCC LIENS
KNOWLEDGE IS POWER
Small business creditors want and expect to be paid back the money which you have either borrowed or you owe the creditor for future receivables which they have purchased from you. When creditors do not receive what is expected, some creditors use the Universal Commercial Code (UCC) to freeze and eventually recover the funds you owe. The UCC is a set of laws regarding commercial transactions which are similar and accepted in all U.S. states.
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Almost all agreements have clauses that state the creditor has the right to file UCC-1 liens with the Secretary of State's office in the borrowers state which serves as a public notice that the lender claims an interest in a borrowers property. Not that this is always a bad thing, when a small business owner defaults or does not pay back their debt, the creditor may use the UCC to freeze and recover the funds that they are owed.
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In many cases, using UCC liens is a common tool used by MCA providers to freeze funds of small business owners to get them to pay their debt. Unfortunately, when UCC liens are implemented by MCA companies the small business owner cannot run their business because their funds are frozen or the business owner does not have an effective way to collect receivables, process payments, etc.
What Beacon Client Solutions Does
When UCC liens are used by creditors it presents a challenge to get the funds immediately released.
The Beacon team can use several strategies (depending on the situation) to get the funds released. Some of those strategies are directly conducted with the creditor and some are employed through the court system using our legal team.
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The bottom line is that we understand the urgency of UCC liens and we know what can and cannot be done. Before you hire someone who says that they can have the UCC lifted immediately, you should take the time to get on a free call with someone from our team to full understand your situation, avoid being scammed, and professionally address the situation with someone who cares.
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