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What Are UCC Filings? Everything to Know

Are you a business owner looking for ways to protect your company and help you get paid? You should receive timely payment for the goods and services you provide to your customers.

Unfortunately, that’s not always the case. Payment times will vary based on your industry and the amount owed but an average of 16 percent of Americans do not pay their bills in full when due!

Fortunately, the Uniform Commercial Code (UCC) exists to help business owners like you secure compensation from customers who become debtors.

Read on to learn the answer to ‘What are UCC filings?’ and how they can help your company!

UCC Filings Defined

Have you ever advanced your goods or services to a customer on credit? Whether your customer is old or new, it may be the norm in your industry to extend a credit line to do business.

In a perfect world, you are always paid for your goods and services upon invoicing your customer. Fortunately, the UCC exists to aid you as a creditor when things don’t go as planned.

UCC filings such as the UCC-1 and UCC3 are just two of the forms that you can file in your state to secure your rights as a creditor.

Understanding the UCC-1 and UCC3 Forms

Throughout the United States, you can protect your business by filing a UCC-1 or UCC3 form. Before you file these documents, you need to understand what they are and each one’s important features.

The UCC-1

The UCC-1 is the form that begins the process of securing your creditor rights. It must be filed with the Secretary of State in the state where a company is incorporated or organized. If the debtor is a person, file it in the state where they live.

A UCC-1 is valid for five years from the date of filing with the Secretary of State. Your lien against debtor property will expire when the UCC-1 becomes invalid.

The UCC3

UCC3 statements are used to amend the statements made in the UCC-1 filed by a creditor against a debtor. This is an important tool for securing your full interest over a debtor’s property.

When does it make business sense to file a UCC3 to amend a UCC-1? One of the best examples is when you have a debtor that continues to accrue larger amounts of debt with your company.

Another time to use UCC3s is when you learn about specific assets of a creditor that you did not know they had at first. This can help you secure a lien against a specific piece of property.

What Are UCC Filings and Why Do They Matter

What are UCC filings? These documents operate as a powerful tool for a creditor outside of the court system. The filing of UCC forms allows other creditors to be put on notice to be careful dealing with a particular debtor.

Are you interested in learning more about other ways to help secure your financial interests as a business owner? Check out our blog section for posts with tips and tricks to start using in your daily operations!


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