UCC-1 Financing Statement

A UCC-1 Financing Statement is a legal document that a lender files to secure an interest in a borrower's personal property as collateral for a loan. It is part of the Uniform Commercial Code (UCC), which standardizes business laws across states. By filing this statement, the lender publicly registers their claim on the collateral, which can include equipment, inventory, or receivables. This protects the lender's rights in case the borrower defaults on the loan, ensuring they have a legal claim to the specified assets before other creditors.