💡 Summary #
A UCC filing (Uniform Commercial Code filing) is a legal notice that a lender or financing company — such as Factor & Fund — has a secured interest in specific assets or invoices you’ve assigned for funding.
It protects both parties by clearly documenting ownership and preventing duplicate or fraudulent financing.
⚙️ Understanding UCC Filings #
When your business receives funding from Factor & Fund, we file a UCC-1 statement through your state’s Secretary of State.
This public filing notifies other lenders that Factor & Fund has a security interest in your accounts receivable (invoices) being factored.
🟦 It’s not a lien on your entire business — only the receivables we’ve purchased.
🧩 Why Factor & Fund Files a UCC #
- Legal Protection: Confirms that invoices funded by Factor & Fund belong to us until buyers pay.
- Prevents Double Funding: Stops another lender or factoring company from funding the same receivables.
- Compliance Requirement: Required by UCC Article 9 and California DFPI rules for secured transactions.
- Transparency: Creates a public record of secured financing — protecting both you and your funder.
⚖️ Key UCC Terms #
| Term | Meaning |
|---|---|
| UCC-1 | A public notice filed by a secured creditor (Factor & Fund). |
| Secured Party | The creditor who has a financial interest in your receivables. |
| Debtor | Your business (the party receiving funding). |
| Collateral | The invoices or accounts receivable being factored. |
| Termination | The official release of the UCC filing after the account is closed. |
🧾 Example #
UCC Filing: Factor & Fund files a UCC-1 on your business for “Accounts Receivable”
Purpose: To disclose that the invoices funded under your factoring agreement are secured transactions
Effect: Other lenders can see this filing, avoiding accidental conflicts or duplicate liens
🔁 When UCC Filings Are Released #
Once your factoring account is closed and all invoices have been paid:
- Factor & Fund files a UCC Termination to remove the record.
- This typically happens within 3–5 business days after final reconciliation.
- The termination notice confirms that you have no ongoing obligation.
✅ Your business credit and standing remain unaffected.
✅ Important Notes #
- A UCC filing does not hurt your credit or limit normal business operations.
- It’s common for any business that uses factoring, leasing, or asset-based lending.
- You can check your UCC filings anytime at your state’s Secretary of State website.
❓ FAQ #
Is a UCC filing the same as a lien?
Not exactly. It’s a notice of interest, not a claim for unpaid debt. It simply records a financial relationship tied to specific invoices.
Can multiple UCC filings exist for my company?
Yes, but they must reference different assets. If multiple parties claim receivables, only the first-filed UCC has priority.
Can I request a copy of my UCC termination?
Yes. Your account representative can provide proof of termination once your account is settled.
