UCC filing in factoring

A factor may file a UCC-1 financing statement to give public notice of an interest in receivables or related collateral.

Key takeaways
  • A UCC-1 filing gives public notice of a security interest and may cover broad collateral.
  • The filing can affect other lenders and existing credit relationships.
  • Termination requires specific steps that should be confirmed before signing.
  • Review the collateral description carefully—it may cover more than the invoices being factored.

A UCC-1 financing statement gives public notice that a secured party claims an interest in listed collateral. In factoring, the collateral description may include accounts or receivables.

The filing scope can affect other lenders. Ask how the filing will be amended or terminated after obligations are paid.

Filing scope

A broad collateral description may cover more than the specific invoices being factored. Review it before signing another credit agreement.

Related reading

Sources

  • Uniform Commercial Code Article 9 - Uniform Law Commission. Accessed 2026-05-19. Reference for secured transactions concepts including receivables and filings.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.