UCC-1 Lawyers in Orlando, Florida

Legal Counsel, P.A. employs UCC-1 lawyers in Orlando, Florida who can assist you if you are lending money to a small business and want to protect the loan with collateral. UCC-1 filings formalize a lender’s right to collateral the loan and lien the borrower’s property. A UCC-1 filing is recorded with the Florida UCC office.  The UCC-1 filings are protected under the Universal Commercial Code, which is a set of rules and regulations that govern secured business transactions.

UCC-1 filings can cover all types of property and assets, including homes and rental properties, and business equipment. UCC-1 filings can even cover all of a person’s tangible assets. If you are planning to lend money to a small business or start-up, you may want to mitigate your loan’s risk by requiring that the borrower put up collateral. A UCC-1 filing offers you added protections should the borrower default on the loan. Legal Counsel, P.A. employs UCC-1 filing lawyers in Orlando, Florida who may be able to assist you if you are lending money to a small business and want to protect yourself by requiring that the borrower put up collateral.  Have questions?  We have answers. Contact Legal Counsel, P.A. at 407.982.4321.

What Should Be Included in a UCC-1 Filing?

In order to be an enforceable Florida UCC-1 it should include the name and contact information of the lender as well as the name and contact information of the borrower. The UCC-1 filing should also include a description of the property or assets that will serve as collateral for the loan. There are two main types of UCC-1 filings.

• UCC-1 Filings for Specific Collateral. Most commonly, when a small business enters into a loan agreement, the business will put up specific items and assets as collateral. These assets can be anything from vehicles, boats, and rental properties, to investments, inventory, and other assets the business or sole proprietor.
• UCC-1 Blanket Liens. With a blanket lien, a creditor can take whatever assets are needed to satisfy the loan. In some cases, the UCC-1 filing might list some items as exempt (such a person’s private home or their car for personal use). These blanket liens offer the greatest protection to lenders but also are the riskiest for business owners.

When making a loan to a small business involving collateral, it is important to make your UCC-1 filing as soon as the loan is originated to best protect your rights. If you are a private lender looking to lend money to a small business involving collateral, it is important to get your loan documents right and to protect your interests. Legal Counsel, P.A. employs UCC-1 filing lawyers in Orlando, Florida who may be able to assist you with your loan documents and filing requirements.  Have questions?  We have answers. Contact Legal Counsel, P.A. at 407.982.4321.

Understanding How a UCC-1 Filing Can Impact Your Business in Orlando, Florida 

If you are taking out a loan to fund your start-up or small business, it is important to understand how your UCC-1 filing can impact your personal assets and your small business. When taking out a small business loan, your lender may require you to put up either business assets or your own personal assets as collateral. A UCC-1 filing protects the lender and allows the lender to foreclosure on the assets set forth in the UCC-1. If you are a small business owner or start-up founder using your own assets to fund your business, it is important to understand that you can lose any property or assets listed under the UCC-1. Legal Counsel, P.A. employs UCC-1 filing lawyers who can help you understand what is at risk before you sign on the dotted lines. Small business owners can take steps to protect their property, by only listing certain property in the UCC-1 filing or by excluding certain property from the filing. UCC-1 filings can impact your business’s ability to get more loans and they can impact your business’s credit score. Finally, if you are using your business assets as collateral, it is important to understand what business assets you are pledging before you sign the loan documents.

Another way a UCC-1 filing can impact your small business is if a lender fails to terminate the lien after you pay off the debt. If you need to get another loan, the UCC-1 filing may show up in a public records search. It is important that when you pay a debt in full that you check to see that the liens have been formally cancelled. This is done by the lender filing a UCC-3 Termination with the Florida UCC.  Legal Counsel, PA can help you if you are a small business and need assistance with formally cancelling UCC-1 filings where the debt obligation has been paid.

Legal Counsel, P.A. employs UCC-1 filing lawyers in Orlando, Florida who can assist you if you are a private lender looking to lend money to a small business, or a small business looking to borrow money. Properly written and executed contracts can protect everyone’s rights. Let Legal Counsel, P.A. assist you with your contracts and UCC-1 filings today.  Have questions?  We have answers. Contact Legal Counsel, P.A. at 407.982.4321.