Securing a loan with a UCC lien can feel daunting. However, alternative lenders offer solutions that can help your business access the capital it needs. Here’s how you can improve your chances of securing funding despite an existing UCC lien.

1. Understand Your UCC Filing Status

Before applying for funding, review your UCC filing to understand the specifics. A UCC-1 lien indicates a lender has a security interest in your assets, which could limit your borrowing options. You can check your UCC status through your state’s Secretary of State website.

2. Seek Subordinate or Second Position Lenders

Many alternative lenders, like Even Funding, specialize in working with businesses that have UCC filings. Some lenders may agree to a second-position lien, meaning they’ll provide financing even if another lender already holds a claim on your assets.

3. Consider Unsecured Financing Options

If a UCC lien is restricting your access to traditional loans, unsecured financing options, such as revenue-based advances or merchant cash advances, may be viable alternatives. These funding options focus more on cash flow and revenue rather than collateral.

4. Improve Your Cash Flow & Financial Health

Lenders assess risk based on cash flow and revenue trends. Strengthen your financial position by:

• Reducing unnecessary expenses

• Improving invoice collection cycles

• Increasing profit margins through strategic pricing

A stronger financial profile can increase your chances of getting approved for financing.

5. Work with Alternative Lenders Who Understand Your Business

Traditional banks may deny funding due to a UCC filing, but alternative lenders like Even Funding specialize in helping businesses navigate these challenges. With flexible approval criteria and fast funding options, you can get the capital needed to grow your business.

Conclusion

Getting a loan with a UCC lien doesn’t have to prevent you from securing financing. By understanding your options, improving cash flow, and working with the right lender, you can access the funds your business needs to thrive.

Need funding despite a UCC lien? Contact Even Funding today to explore your financing options.