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Ucc-1 filings to help build your biz credit


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29 replies to this topic

#1 RepoMan31

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Posted 26 February 2012 - 03:32 PM

I was reading some articles that suggested that you file some ucc-1 filings in the business name in order to help you build not only your biz credit but also can be used to boost your personal credit as well. Does anyone out there know anything about this and whether its legal or not and if so how and where do you go to get this done. I am really unsure about this. Please explain



#2 sully1975

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Posted 28 February 2012 - 05:23 PM

http://en.wikipedia....ncing_statement

#3 disnugaswagg

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Posted 28 February 2012 - 06:30 PM

http://en.wikipedia....ncing_statement


Sully would you please explain... I am at a complete lost.

#4 shubbardman

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Posted 28 February 2012 - 11:16 PM


http://en.wikipedia....ncing_statement


Sully would you please explain... I am at a complete lost.


A UCC-1 is a security agreement that a creditor would have with a business to repay a loan or lease agreement. For instance, let's say you own a bakery and need a new tortilla making machine to expand production. The machine costs a $100K and you cannot afford to pay for it upfront, so you approach a leasing company who agrees to pay for the machine and lease it to you for the next ten years @ $1K per month. The lease company is not just going to deliver you a $100k machine without some security, so they ask you to sign a lease agreement along with a UCC-1 specifically naming the tortilla making machine long with your accounts receivable as collateral. Once the machine is paid for, they should release the UCC-1. However, if you defualt on the payment or file for Bankruptcy, the lease company will try to get their machine back.

The above example is a overly simplified use of a UCC-1 as it can be used for a variety reasons.

#5 disnugaswagg

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Posted 29 February 2012 - 01:56 AM



http://en.wikipedia....ncing_statement


Sully would you please explain... I am at a complete lost.


A UCC-1 is a security agreement that a creditor would have with a business to repay a loan or lease agreement. For instance, let's say you own a bakery and need a new tortilla making machine to expand production. The machine costs a $100K and you cannot afford to pay for it upfront, so you approach a leasing company who agrees to pay for the machine and lease it to you for the next ten years @ $1K per month. The lease company is not just going to deliver you a $100k machine without some security, so they ask you to sign a lease agreement along with a UCC-1 specifically naming the tortilla making machine long with your accounts receivable as collateral. Once the machine is paid for, they should release the UCC-1. However, if you defualt on the payment or file for Bankruptcy, the lease company will try to get their machine back.

The above example is a overly simplified use of a UCC-1 as it can be used for a variety reasons.


Okay, thanks for a little more clarity. Now, I understand that this agreement would be made public, but how could this help your personal credit and would there be stipulations for p2p contracts? Most importantly, if the creditor does not have a DUNS number would this not be a benefit for building credit in general? Thanks for your assistance in advance.

#6 shubbardman

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Posted 03 March 2012 - 07:22 PM

Okay, thanks for a little more clarity. Now, I understand that this agreement would be made public, but how could this help your personal credit and would there be stipulations for p2p contracts? Most importantly, if the creditor does not have a DUNS number would this not be a benefit for building credit in general? Thanks for your assistance in advance.


Yes, it can help your business build credit. Are you seeking accounts receivable or inventory financing?

#7 disnugaswagg

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Posted 04 March 2012 - 04:10 AM



Okay, thanks for a little more clarity. Now, I understand that this agreement would be made public, but how could this help your personal credit and would there be stipulations for p2p contracts? Most importantly, if the creditor does not have a DUNS number would this not be a benefit for building credit in general? Thanks for your assistance in advance.


Yes, it can help your business build credit. Are you seeking accounts receivable or inventory financing?


inventory financing...

#8 Miss Jay

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Posted 21 July 2014 - 01:50 PM

 

Okay, thanks for a little more clarity. Now, I understand that this agreement would be made public, but how could this help your personal credit and would there be stipulations for p2p contracts? Most importantly, if the creditor does not have a DUNS number would this not be a benefit for building credit in general? Thanks for your assistance in advance.


Yes, it can help your business build credit. Are you seeking accounts receivable or inventory financing?

 

What can I put in a UCC-1 to file under my new business name to help boost my business credit? I just started my business about a week ago.



#9 BRBiz

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Posted 21 July 2014 - 02:05 PM

For others reading this....UCC filings have almost no effect on your biz credit especially on a new business and it's questionable on established businesses.

#10 GR8WhiTE

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Posted 23 July 2014 - 04:03 AM

For others reading this....UCC filings have almost no effect on your biz credit especially on a new business and it's questionable on established businesses.

+1 on this.

 

You are better off getting a secured CC for your business than going with the UCC route. Beware of anyone on the internet claiming they can file a UCC for you or your company. It's a scam. 



#11 drew3918

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Posted 23 July 2014 - 09:32 PM

 

For others reading this....UCC filings have almost no effect on your biz credit especially on a new business and it's questionable on established businesses.

+1 on this.

 

You are better off getting a secured CC for your business than going with the UCC route. Beware of anyone on the internet claiming they can file a UCC for you or your company. It's a scam. 

 

That is not 100% correct YES lots of scams are out about this topic. BUT not all of them are scams..



#12 BRBiz

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Posted 23 July 2014 - 09:36 PM


 


For others reading this....UCC filings have almost no effect on your biz credit especially on a new business and it's questionable on established businesses.

+1 on this.
 
You are better off getting a secured CC for your business than going with the UCC route. Beware of anyone on the internet claiming they can file a UCC for you or your company. It's a scam. 
 
That is not 100% correct YES lots of scams are out about this topic. BUT not all of them are scams..

If you pay some one to file a UCC for your company it's a scam or fraud what ever you want to call it. You don't buy UCC filings.

#13 GR8WhiTE

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Posted 24 July 2014 - 03:50 AM

 

 

 

For others reading this....UCC filings have almost no effect on your biz credit especially on a new business and it's questionable on established businesses.

+1 on this.
 
You are better off getting a secured CC for your business than going with the UCC route. Beware of anyone on the internet claiming they can file a UCC for you or your company. It's a scam. 
 
That is not 100% correct YES lots of scams are out about this topic. BUT not all of them are scams..

If you pay some one to file a UCC for your company it's a scam or fraud what ever you want to call it. You don't buy UCC filings.

 

exactly



#14 drew3918

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Posted 24 July 2014 - 09:41 AM

 

 

 

For others reading this....UCC filings have almost no effect on your biz credit especially on a new business and it's questionable on established businesses.

+1 on this.
 
You are better off getting a secured CC for your business than going with the UCC route. Beware of anyone on the internet claiming they can file a UCC for you or your company. It's a scam. 
 
That is not 100% correct YES lots of scams are out about this topic. BUT not all of them are scams..

If you pay some one to file a UCC for your company it's a scam or fraud what ever you want to call it. You don't buy UCC filings.

 

 

 

 

 

For others reading this....UCC filings have almost no effect on your biz credit especially on a new business and it's questionable on established businesses.

+1 on this.
 
You are better off getting a secured CC for your business than going with the UCC route. Beware of anyone on the internet claiming they can file a UCC for you or your company. It's a scam. 
 
That is not 100% correct YES lots of scams are out about this topic. BUT not all of them are scams..

If you pay some one to file a UCC for your company it's a scam or fraud what ever you want to call it. You don't buy UCC filings.

 

So you're telling me WHEN I pay my lawyer to file the paperwork it is a Scam????????



#15 BRBiz

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Posted 24 July 2014 - 09:56 AM

Have you paid a lawyer to do this? And what debt was it involving?

#16 GR8WhiTE

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Posted 24 July 2014 - 10:22 AM

Let's clarify something here. We are talking about guys on the internet selling this stuff. Lawyers promote law. Any type of law. If it's business law and they have a website, they don't promote in big capital letters that they file UCC's do they? No. You can ask them and I am sure they'll do it. If it's a lawyer, it's legit. Internet scammers are internet scammers.


Edited by GR8WhiTE, 24 July 2014 - 10:25 AM.


#17 drew3918

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Posted 24 July 2014 - 11:12 AM

Have you paid a lawyer to do this? And what debt was it involving?

As a matter of fact Yes I have after a few times and taking notes I have did it my self. My management company will lease and file a U.C.C with one of my other C-Corps or L.LC for equipment sometimes it gets posted other times it does not. As I am sure you know lots of business operations do U.C.C day in and day out. A lot of Equipment dealers, Heavy Equipment, Semis, Farm Tractors,etc,etc,etc...

 

I am pretty sure the scamer you guys are talking about use to be a member on this board. It is a shame that guy did offer some good advice. Then again every one can offer some type of info..



#18 BRBiz

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Posted 24 July 2014 - 11:15 AM

Have you paid a lawyer to do this? And what debt was it involving?

As a matter of fact Yes I have after a few times and taking notes I have did it my self. My management company will lease and file a U.C.C with one of my other C-Corps or L.LC for equipment sometimes it gets posted other times it does not. As I am sure you know lots of business operations do U.C.C day in and day out. A lot of Equipment dealers, Heavy Equipment, Semis, Farm Tractors,etc,etc,etc...
 
I am pretty sure the scamer you guys are talking about use to be a member on this board. It is a shame that guy did offer some good advice. Then again every one can offer some type of info..

And why do you think it doesn't get added some times?

#19 drew3918

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Posted 24 July 2014 - 11:19 AM

 

 

Have you paid a lawyer to do this? And what debt was it involving?

As a matter of fact Yes I have after a few times and taking notes I have did it my self. My management company will lease and file a U.C.C with one of my other C-Corps or L.LC for equipment sometimes it gets posted other times it does not. As I am sure you know lots of business operations do U.C.C day in and day out. A lot of Equipment dealers, Heavy Equipment, Semis, Farm Tractors,etc,etc,etc...
 
I am pretty sure the scamer you guys are talking about use to be a member on this board. It is a shame that guy did offer some good advice. Then again every one can offer some type of info..

And why do you think it doesn't get added some times?

 

That is the million dollar Question... UCC filed on the same type of Equipment one in Nov other in March , March shows up NOV , never did same exact type of Equipment same amount of $$$ Same paperwork.  Has happened more then once.


Let's clarify something here. We are talking about guys on the internet selling this stuff. Lawyers promote law. Any type of law. If it's business law and they have a website, they don't promote in big capital letters that they file UCC's do they? No. You can ask them and I am sure they'll do it. If it's a lawyer, it's legit. Internet scammers are internet scammers.

Care to share this scammers name? Or PM me ? ? ? ?



#20 BRBiz

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Posted 24 July 2014 - 11:21 AM

It's not getting posted to your reports?

#21 BRBiz

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Posted 24 July 2014 - 11:23 AM

Have you paid a lawyer to do this? And what debt was it involving?

As a matter of fact Yes I have after a few times and taking notes I have did it my self. My management company will lease and file a U.C.C with one of my other C-Corps or L.LC for equipment sometimes it gets posted other times it does not. As I am sure you know lots of business operations do U.C.C day in and day out. A lot of Equipment dealers, Heavy Equipment, Semis, Farm Tractors,etc,etc,etc...
 
I am pretty sure the scamer you guys are talking about use to be a member on this board. It is a shame that guy did offer some good advice. Then again every one can offer some type of info..
And why do you think it doesn't get added some times?
That is the million dollar Question... UCC filed on the same type of Equipment one in Nov other in March , March shows up NOV , never did same exact type of Equipment same amount of $$$ Same paperwork.  Has happened more then once.

Let's clarify something here. We are talking about guys on the internet selling this stuff. Lawyers promote law. Any type of law. If it's business law and they have a website, they don't promote in big capital letters that they file UCC's do they? No. You can ask them and I am sure they'll do it. If it's a lawyer, it's legit. Internet scammers are internet scammers.

Care to share this scammers name? Or PM me ? ? ? ?

Have you paid a lawyer to do this? And what debt was it involving?

As a matter of fact Yes I have after a few times and taking notes I have did it my self. My management company will lease and file a U.C.C with one of my other C-Corps or L.LC for equipment sometimes it gets posted other times it does not. As I am sure you know lots of business operations do U.C.C day in and day out. A lot of Equipment dealers, Heavy Equipment, Semis, Farm Tractors,etc,etc,etc...
 
I am pretty sure the scamer you guys are talking about use to be a member on this board. It is a shame that guy did offer some good advice. Then again every one can offer some type of info..
And why do you think it doesn't get added some times?
That is the million dollar Question... UCC filed on the same type of Equipment one in Nov other in March , March shows up NOV , never did same exact type of Equipment same amount of $$$ Same paperwork.  Has happened more then once.

Let's clarify something here. We are talking about guys on the internet selling this stuff. Lawyers promote law. Any type of law. If it's business law and they have a website, they don't promote in big capital letters that they file UCC's do they? No. You can ask them and I am sure they'll do it. If it's a lawyer, it's legit. Internet scammers are internet scammers.

Care to share this scammers name? Or PM me ? ? ? ?
It's just not Gboggie! A lot of people do this fraudulently.. He didn't invent these or any other business credit building method wether legal or illegal he just invested his entire life to learning it.

Edited by BRBiz , 24 July 2014 - 11:29 AM.


#22 GR8WhiTE

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Posted 24 July 2014 - 11:26 AM

You know your scammers Drew. I underestimated you.



#23 BRBiz

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Posted 24 July 2014 - 11:33 AM

The direction I'm going with this is if a CRA figures out a business owner filed a UCC for their own business or another business they control filed it then they won't put this on your reports. This is common practice by scammers. Doesn't mean what your doing is a scam but no one can really verify it.. Also I have heard some states don't allow it either.

So doing it could lead to issues with your reports being flagged. IMO it's just not worth any little help it may be to your credit profile.. A brand new company with UCC filings is also a big red flag.

Edited by BRBiz , 24 July 2014 - 11:36 AM.


#24 CG in TX

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Posted 24 July 2014 - 02:24 PM

I remember another thread on this topic several months ago.  The problem with relying on a UCC filing to build credit is that it is a static document.  All it does is indicate that you have granted a security interest in some or all of your assets, and who you granted it to.  They do not show an amount or terms, just the security interest.  For that to be converted into a trade line would require a direct report from the secured lender.  Without that, it merely represents an unknown debt.

 

Where this becomes a problem is if you have multiple companies and file a UCC showing one of your companies as the lender and the other as the borrower when there is no actual underlying loan or lease.  If the lender company is contacted for a credit reference and provides one on this shadow transaction, you have most likely committed fraud.

 

In the other thread that I mentioned, a poster recommended that you have a friend file the UCC, and have an actual loan agreement to back it up.  The problem here is twofold...as above, unless the money actually is lent and repaid, and trade line is fraudulent.  The 2nd issue is what happens if you have a falling out with your friend.  Chances are, he sues you for the full amount of the "loan", and you either end up with a judgment against you or you admit in court to committing fraud.  Sounds like a lose, lose proposition to me.



#25 BRBiz

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Posted 24 July 2014 - 02:36 PM

I remember another thread on this topic several months ago.  The problem with relying on a UCC filing to build credit is that it is a static document.  All it does is indicate that you have granted a security interest in some or all of your assets, and who you granted it to.  They do not show an amount or terms, just the security interest.  For that to be converted into a trade line would require a direct report from the secured lender.  Without that, it merely represents an unknown debt.
 
Where this becomes a problem is if you have multiple companies and file a UCC showing one of your companies as the lender and the other as the borrower when there is no actual underlying loan or lease.  If the lender company is contacted for a credit reference and provides one on this shadow transaction, you have most likely committed fraud.
 
In the other thread that I mentioned, a poster recommended that you have a friend file the UCC, and have an actual loan agreement to back it up.  The problem here is twofold...as above, unless the money actually is lent and repaid, and trade line is fraudulent.  The 2nd issue is what happens if you have a falling out with your friend.  Chances are, he sues you for the full amount of the "loan", and you either end up with a judgment against you or you admit in court to committing fraud.  Sounds like a lose, lose proposition to me.



Exactly!

Don't get us wrong if your actually doing this with a real loan between two of your businesses its not a problem but you need to make sure there is a paper trail and money is being exchanged between both companies. If not and it's listed on any of your biz reports any creditor could use that against you and the company and easily break your corporate veil.




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