UCC Filing Leads
Many of Synergy’s clients have been buying UCC filing leads. There are some good things and some bad things about UCC leads.
What are UCC filing leads? UCC stands for Universal Commercial Code.
“A UCC Filing is a legal notice a lender files with the secretary of state when they have a security interest against one of your assets. It gives notice that the lender has an interest, or lien, against the asset being used by you to secure the financing.”
Why do lenders file a UCC on a business that they lend money to? This is a great question. The answer is fairly simple to understand. If a lender lends you money they did so based on an evaluation of your risk. The underwriters looked over your credit profile and your bank account to determine how risky you would be.
If you take the lenders money and then take another loan what does that do to the risk level? It could make you over-leveraged. This could force you out of business. So if the first lender files a UCC then the next lender can see it. Then the second lender can evaluate your risk knowing that you already have a loan with UCC Filing Leads.
UCC Filing Leads – The Good
UCC leads can be good because these leads already understand how it works. They’ve already gone through the submission process. They understand the documents that will be needed to secure the funds. They won’t be surprised if they hear they need extra documents.
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With UCC leads you can lower the sticker shock. Sticker shock is when you pitch the details of an MCA and the borrowers freaks out about daily payments and short term advances.
UCC Filing Leads- The Bad
The problem with UCC leads is that everyone has been calling these leads for years. UCC leads for sale are the most beat up leads in the industry. These borrowers are so tired of getting calls that they change their phone numbers and block spam calls to prevent talking to another broker.
Another issue is that with UCC filing leads you often get borrowers who just got an advance. So now your working to get a small second position loan and will not make a high commission. Here at Synergy we have developed several ways to generate MCA leads.
Disclaimer: UCC Filing Leads are not guaranteed to convert. Every company has their own agents who have different sales skills. Each company has their own follow up systems that may yield different results. Companies have their own lenders where they can obtain approvals. Synergy Direct Solution LLC can in no way guarantee conversions or sales.
Check out the different options we have to generate leads below:
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How UCC Filing Leads Work:
When someone or a company files a UCC document, it means they’ve pledged collateral (such as real estate, equipment, or accounts receivable) to secure a loan or other financial obligation. For businesses that specialize in lending, collection, or asset management, UCC filings can offer leads on:
- Potential Borrowers: If you’re a lender, UCC filings can show businesses that are looking to borrow money, indicating they might be in need of funding.
- Distressed Businesses: If a company is taking out multiple loans or filing many UCCs, it could indicate that they are financially troubled or under stress, potentially presenting opportunities for collections or even buying distressed assets.
- Secured Assets: UCC filings give insight into what collateral is securing a loan, so if you are a buyer or investor, you can look for opportunities where the collateral might become available if the borrower defaults.
- Commercial Lending Opportunities: Businesses that have filed UCCs could be seeking working capital, which can open doors for commercial lending or financing offers.
Where to Find UCC Filing Leads:
You can find UCC filing leads in several places:
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Secretary of State Websites: Every state in the U.S. has a database of UCC filings that you can search for leads. Some states allow free access, while others charge a small fee.
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UCC Lead Generation Services: Several third-party services compile and aggregate UCC filing data into lead lists, which are then sold to businesses that specialize in lending, collections, or asset purchasing. Some well-known UCC lead providers include:
- UCC Direct
- UCC Lookup
- Lien Solutions
- DataQuick (for real estate and property-related filings)
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Credit Reporting Agencies: Some services, like Experian or Equifax, offer UCC data as part of their business credit reports, so you can identify companies that have secured debt.
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Commercial Lending Companies: If you work in lending, many institutions offer services where they can help you access and analyze UCC filings to develop targeted lists of businesses that might benefit from your products.
How to Use UCC Filing Leads:
- Marketing to Businesses: Target businesses that have recently filed a UCC, particularly if they are in need of funding or are expanding and might need additional credit or services.
- Collections: If you’re in collections, UCC filings can help you identify businesses that may be in financial trouble or at risk of defaulting, giving you early insight into potential recovery cases.
- Investing: Investors can use UCC filings to identify businesses with valuable collateral that could be of interest if they default on loans, leading to opportunities for asset acquisition.
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