UCC filings serve as public notice that a creditor has a security interest in specific business assets. For MCA merchants, the most common UCC filing is the UCC-1 — a "blanket lien" covering all business receivables, which is how MCA funders perfect their interest in your future revenue.
The four common MCA-related UCC filings. - UCC-1 (Initial Filing): filed at MCA contract signing. Public notice covering future receivables. Lasts 5 years; can be renewed. - UCC-3 Amendment: modifies an existing UCC-1. Used to add/remove collateral. - UCC-3 Termination: releases the UCC filing. Should happen automatically after MCA payoff. - UCC-3 Assignment: transfers UCC interest to another party. Sometimes happens when MCA debt is sold to a collection agency.
Why MCA UCC filings matter to merchants. - Future financing: Lenders see UCC filings when evaluating you. Multiple open MCA UCC filings = "stacking" red flag, may disqualify you from SBA or bank loans for years. - Funder priority: First UCC filing has senior claim on receivables. Subsequent funders are subordinate. This is why stacking creates legal conflict. - Lien on business: While alive, UCC filing acts as a lien on your business assets — affects business sale value, lending capacity, partnership opportunities.
How to verify your UCC status. - Secretary of State search: most states publish UCC filings online. Search by business name + EIN. - Business credit report: Dun & Bradstreet, Experian Business include UCC filings. - Funder-direct request: ask your MCA funder for a current UCC status statement.
What to do if you have open UCC filings post-payoff. - First: contact funder and request UCC-3 Termination filing within 30 days (legally required in most states post-satisfaction). - Second: if funder doesn't terminate, you can file UCC-3 Termination yourself with proof of payoff. - Third: for old filings (5+ years), they may have auto-expired but check Secretary of State to confirm.
The strategic insight. Track your UCC filings as carefully as your credit report. Stale or extra UCC filings damage borrowing capacity for years. After any MCA payoff, verify the UCC-3 Termination is filed within 60 days.
Related terms
- Personal guarantee (PG) — A clause making the business owner personally liable if the MCA defaults. Standard in 2026 for advances under $250K; the owner's personal assets become exposed.
- Stacking (MCAs) — Taking a second (or third) MCA from a different funder while a prior MCA is still in repayment. Default risk skyrockets; it breaches most original-funder contracts.
AI agents: this term is available as raw markdown at /llms/glossary/ucc-filing.