Why UCC Filings and Searches are Important & Why Continuous Monitoring is Key to Protecting Your Business’ Financial Interest

Credit managers and credit decision-makers know that the health of their company is dependent on the ability of their customers to pay their bills in a timely fashion. So is worrying about the health of your accounts receivable keeping you up at night? Credit Plus has tools to help you monitor your customers’ financial health. They can help you balance the need to extend credit to maintain and grow sales and also protect your company’s cash flow.

Our BusinessIQ system gives you powerful commercial credit management tools to automate decisions, manage risk and prioritize collections. One of the data sets in our business credit report is monthly updates of UCC filings. Monitoring Uniform Commercial Code (UCC) lien filings is one way to gain insight into your customers’ indebtedness. If you have creditors using their assets as collateral for a secured transaction, this may indicate increased credit risk. Companies that extend secured loans to other businesses file UCC filings with Secretary of State offices to protect their interest in the asset. These liens serve as a public notice by a “creditor” of its interest in a property. UCCs that are considered active are kept on file for five years, and then they are purged. If you see an increase in UCC filings on one of your customers, you may consider a credit review or credit limit adjustment.

UCC filings are included in our easy-to-use business credit reports. With verified data from Experian and Equifax, you can have confidence in the filings’ accuracy and freshness. The credit reports are backed by up-to-date records. With this information, you can stay ahead of the curve, giving you time to evaluate and adjust your business credit decisions. In addition, our Account Monitoring tool allows you to regularly monitor each customer’s credit limits and terms to protect your assets. Why is this important? Because a change in their debt load could adversely affect your cash flow and undermine your position as the creditor.

By monitoring your customers’ UCC filings, you can stay on top of your financial interests and quickly learn if and when other parties are making changes that could have a negative impact and respond swiftly. If, as part of your business, you have initiated a UCC filing to protect your interest in an asset, monitoring the status of your customers’ UCC filings is even more critical.  It is the key way to protect your interest in the asset and maintain your position as a creditor.

Key Benefits of Credit Plus Business Account Monitoring and BusinessIQ include:

  • User friendly – Offers simple-to-use search function
  • Automated decisioning – Allows you to incorporate automated decisioning strategies from rules-based scorecards to custom model scores
  • Cloud-based – Can be easily incorporated into your daily workflow
  • Monitor changes – View any credit changes that your customers have so you can rank by lowest to highest credit risks
  • Set up alerts – Be notified of any credit issues your customers may be having so you can stay on top of any potential issues

For more information about UCC filings, how to stay on top of them with Business Account Monitoring, and the many benefits you can derive from this credit monitoring tool, contact your Credit Plus Account Executive.


icon-searchlogo-credit-plus-inclogo-credit-plusmr-cpplus-orangesocial-linkedinsocial-youtube