Secured Party: Meaning in a Merchant Cash Advance
The secured party is the person or company named on a UCC-1 financing statement as holding the security interest. On a merchant cash advance filing, it is the funder, a company acting for the funder, or an investor that bought part of the deal.
What does secured party mean?
A lien search result lists two main names: the debtor and the secured party. The secured party is who you contact to release the filing. It isn't always the company whose logo was on your offer. Funders often use a separate legal entity, a filing service or a collateral agent, and a syndicated deal can list a different company altogether.
Why does secured party matter to your business?
When a new funder or bank sees an old filing, it wants to know whether that advance is still open. If you don't recognize the secured party's name, you can't answer the question, and underwriting stops. Matching every name on your lien search to a real, known advance is one of the fastest ways to clean up a file.
What if you don't recognize the name?
- Compare the name and address with the legal entity in your signed contract.
- Search the name online along with "UCC" or "funding" to find the parent company.
- Ask the funder you paid for a letter that names the filing and confirms it is theirs.
What if the advance is paid off?
Ask the secured party itself to file the UCC-3 termination. A letter from someone else doesn't change the public record.
Where will you see it?
On the UCC-1 form and in search results from the secretary of state. In your merchant agreement, where the funder's legal name appears in the first paragraph. On a zero balance letter, which should come from the same entity that filed.
Which terms are related to secured party?
The full list is in the glossary. Owners ask about this in How do I find UCC filings on my business?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.