can I barrow money against ucc from the United States of america
i got a client who file a ucc against united states and want to use it as collateral to barrow against.can this be posible
I assume you’re referring to a UCC lien. UCC liens, or UCC filings, are notices. they put the world on notice that someone owes you something. For example, you can put the world on notice that someone has borrowed $100k from you and you have a right to the business assets if they default until they pay it back. This is so other lenders don’t make lending decisions based off the same assets.
You can’t use a UCC filing as collateral directly, but you might be able to use your accounts receivable as collateral. Since someone owes you a large amount of money it’s an asset to the business, but you’ll need the actual loan documentation and not the UCC filing to try and make that work. Not every lender will agree to using that type of collateral because it’s not something they can immediately cash in on if you default with whatever loan agreement you’re using the collateral for, but it is possible.