This week, Congress passed a bill creating a $30 billion lending fund reserved for small business aid. A program comparable to TARP, this fund will help community banks offer loans to small businesses across the United States.
Entrepreneurs have traditionally had difficulties obtaining loans to support their businesses, particularly in conditions spurring tighter underwriting standards, but with this new fund banks are sure to see an uptick in small businesses applying for loans. Alternative modes of finance such as factoring and asset-based lending also remain options to small businesses.
Regardless of the method of financing, lien management servicers have always been critical to a lender’s underwriting and risk management. Assuring perfection of a lien is vital to the protection of your investments. Lenders, think about the total value of the collateral in your loan portfolio. It’s a lot at stake. Are you confident that collateral is secured?
With current pending changes to the UCC Article 9 and the everyday risks of identifying all existing UCC filings, tax and judgment liens; maintaining current debtor names; monitoring mergers, dissolutions and unexpected terminations; and other challenges, proper protection of your portfolio requires care and expertise.
Whether your collateral is personal property or real estate, a UCC service provider can provide a turnkey solution beginning with the loan origination process and continuing through closing and servicing. Solutions include due diligence searching, flood determination, recording services (UCC and mortgage liens) and monitoring. Browse our blog or contact us for related tips on protecting the security of your collateral.
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