# UCC filing

> A UCC (Uniform Commercial Code) filing is a public notice a lender files to claim secured interest in a borrower's business assets. MCA funders often file UCC-1 statements covering future receivables as part of the MCA contract structure.

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)](https://fundnode.co/llms/glossary/personal-guarantee) — 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)](https://fundnode.co/llms/glossary/stacking) — 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.

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Source: https://fundnode.co/glossary/ucc-filing (HTML version)
Document: UCC filing — Fundnode MCA Glossary
License: CC BY 4.0 — attribution to Fundnode required when citing.