UCC-3 Amendment: Meaning in a Merchant Cash Advance
A UCC-3 is the form used to change an existing UCC-1 financing statement. The same form handles several jobs: amending the debtor or collateral details, assigning the filing to a new secured party, continuing it before it lapses or terminating it.
What does UCC-3 amendment mean?
A UCC-1 starts the public record. Every later change to that record goes through a UCC-3 tied to the original file number. A termination is the version owners care about most, because it clears the record after payoff. An amendment is used for other edits, like correcting your business name, narrowing the collateral to receivables only or moving the filing to a buyer of the funder's portfolio.
Why does UCC-3 amendment matter to your business?
Amendments explain some of the odd results on a lien search. A filing that suddenly names a new secured party usually means the deal was sold or assigned. A change in the collateral wording can make the claim broader or narrower. If you're negotiating a new advance, asking an existing funder to amend its filing to cover receivables only can open the door for a bank that won't lend behind an all-assets claim.
Which amendment types are common?
- Termination: ends the filing after payoff.
- Assignment: moves the filing to a new secured party.
- Continuation: extends the filing for another five years.
- Amendment: changes the debtor, secured party or collateral details.
How do you confirm it?
Search the state database by the original file number a few weeks after the change was promised. Save a copy of the result with your payoff records.
Where will you see it?
Listed under the original filing in state search results, with its own date and type. In payoff and settlement documents that promise a filing change. In portfolio sales between funders.
Which terms are related to UCC-3 amendment?
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.