As part of the Early Pay Program, Constrafor files a UCC-1 financing statement to secure its interest in the invoices being financed.
What is a UCC Financing Statement?
A UCC (Uniform Commercial Code) financing statement is a public record that serves as notice of a secured interest in specific assets. It is commonly used in commercial transactions to acknowledge financial commitments related to receivables or other business assets.
Why Does Constrafor File a UCC?
As part of the Early Pay Program, Constrafor will file a UCC-1 financing statement to document its involvement in facilitating early payments on subcontractor invoices. This filing helps ensure that the invoices purchased through the program remain properly accounted for in financial transactions.
How Does a UCC Filing Affect Your Business?
- The UCC filing is a standard business practice and does not impact credit.
- It applies to your company's assets up to and including the amount owed on the purchased receivables in Constrafor’s Early Pay Program, acknowledging Constrafor’s role in purchasing specific receivables.
- Once the financial obligations related to the early payments are completed, Constrafor can remove the UCC filing. This is generally only recommended if your company has no expected need for Constrafor's Early Pay Program within the upcoming 6 months.
Where Can You Find More Information?
You can check UCC filings through your state’s Secretary of State website. Constrafor can only provide information on UCC filings as it pertains to the above, which is not intended to advise your company on anything unrelated to our UCC.
If you have questions regarding a UCC filing related to your use of the Early Pay Program, please contact our support team at support@constrafor.com or (650) 313-6165.