The average US citizen has a debt of $90,460, according to the loans the government has taken so far. Dealing with debt has never been an interesting experience, especially as a creditor. Most business owners find it hard to chase after debtors and end filing for bankruptcy.
Fortunately, some laws protect business owners from financial loss. This is where UCC services come in handy. The uniform commercial code of article 9 gives trade creditors a chance to secure their accounts receivable.
They get to own the debtor’s property assets until the debt is fully paid. Keep reading this article to understand how your business could benefit from UCC services.
Consignment UCC Filing
A consignment agreement comes in handy when you want a merchant to help you move your goods. Now, the merchant may be moving other similar products but of another brand. The selling agent holds the good in trust.
Yet, the consignor holds the title until the point of sale. Having UCC services will provide security by protecting your ownership of the goods. Check out these UCC services to make sure you don’t lose goods to selling agents.
Blanket UCC Services
In financial transactions, it can be disappointing when some clients fail to meet their end of the bargain. In case of non-payment, you can have the right to ownership of the lenders’ property.
It’s advisable to file for UCC services because they will provide legal security for the creditor. You will have the right to seize the property assets of the debtor to serve as collateral.
Warehouse UCC Security
Sometimes you might have extra space in your warehouse and decide to rent it out. However, the firm you are holding property for can fail to pay for the storage and handling cost.
The best way to go about this is to get a warehouse lien. It will prevent the client from shipping the goods. Besides, it gives the warehouse operator the legal right to sell the goods.
Purchase Money Security Interest
A purchase money security interest is a special type of UCC security. It comes in handy when you have offered financial help to a debtor to get some goods in credit. When you seek UCC services for security interest, you get a priority over other lenders during payment.
Equipment UCC Security
Mostly when working with other companies in your industry, it’s common to lend out equipment and machinery. Always get UCC filing on equipment that you lend out to prevent the lender from getting a loan with your equipment.
This will help you avoid situations where you lose out on equipment by entrusting the wrong firm. UCC provides security by preventing other parties from claiming ownership of the equipment.
Why You Need UCC Services
Smart business owners understand the significance of approaching all transactions legally. The sole purpose of UCC services is to protect the creditor from losing assets to debtors.
Outsource UCC services to prevent huge financial losses in the future. Check out this website for more legal, financial tips.