Uniform Commercial Code (UCC) security interests offer significant benefits, like reducing risks for lenders if a debtor defaults.
However, the security interest also has a downside. To perfect its security interest, the lender normally must file a UCC financing statement thereby putting its customer list into the public domain for competitors to see.
In highly-competitive lending markets like factoring, non-bank lending, and merchant cash advance, competitors will nefariously use this information to target your customer lists.
In this new white paper, Paul Hodnefield, CSC® associate general counsel, discusses:
- Challenges lenders face when putting their information in the public record
- What tactics lenders have used to prevent competitive losses
- Solutions that balance preventing use of the public records for sales solicitations with due diligence search requirements
Fill out the form to the right to download this whitepaper!