UCC List

UCC refers to the Uniform Commercial Code, commonly used by lead providers and merchants to find new MCA leads. The list contains information on those businesses that took MCAs and others who are currently looking for funding. However, the UCC list is not only applicable to MCAs, as most lead providers and other businesses refer to this list to get more customers.

What is a UCC?

UCC is a standardized and extensive set of laws governing all US commercial and business transactions. It is not federal law but rather an adopted state law. Law uniformity is essential, especially when it comes to interstate business transactions. Companies universally adopted the UCC. With this, business owners can join into contracts with utmost confidence that all the courts will similarly enforce the terms and conditions within the American jurisdiction. Consequently, this allows business growth and for the economy to thrive. In some cases, the UCC list is tagged as the “backbone of American commerce.”

The UCC was formed in 1953 after some businesses found it difficult to transact with other companies across state lines. Since state laws vary depending on the states in America, they have to develop ways to do business while still being protected by a universal law.


Unlike most laws in the United States, Congress did not establish the UCC. Instead, they were formed by private organizations, including the American Law Institute (ALI) and the Uniform Law Commission (ULC).

The ULC was formed in 1892 with the sole purpose of coming up with a uniform commercial law. The organization then created various laws until the 1950s. Starting from the 1950s, the ULC and ALI collated all the commercial laws into a set of commercial codes for all states to follow. In 1953, Pennsylvania first adopted the UCC, which ALI and ULC presented in 1951. Louisiana was the last of the fifty US states to adopt the UCC. However, it only adopted a part of it, not all the articles under the UCC list.

How does it work?

The Universal Commercial Code generally regulates personal property sales and other commercial transactions. Suppose you previously purchased a vehicle or a business; you might have signed the UCC-1 statement. This means that titles will stay in the lender’s possession until you pay off the loan—the laws inside the UCC focus on the activities of entrepreneurs and small businesses. Part of the purpose is to clarify how every state may separately regulate business operations.

Also, the UCC implements standardized rules in processing checks and other kinds of commercial paper. This usually applies to properties secured by banks, where they assume ownership of the titles until borrowers pay off the loan amount. In other cases, companies that do business transactions outside their home states must still comply with all the applicable UCC guidelines. This includes selling goods, leasing equipment, establishing contracts, and borrowing money.

UCC articles

To understand better how the UCC regulates businesses in the United States and the aspects it covers, you can check the list below.

  • Article 1. This part covers the general provisions, and establishing definitions and specific parameters for the UCC must be applied. The article was last updated in 2001.
  • Article 2/2a. The article covers laws and regulations on the sale of goods but excludes service contracts and real estate. Meanwhile, Article 2a is all about personal property leases.
  • Article 3. You can turn to Article 3 for various laws on drafts, checks, and other negotiable documents like notes. The UCC considers the item negotiable if they are transferable to another individual and can still be enforceable versus the original payer.
  • Article 4/4a. Suppose you wish to check on laws governing bank collections and deposits, visit Article 4. This also covers regulations for collections through automated interbank and check processes. Also, Article 4a tackles the law on fund transfers.
  • Article 5. This tackles letters of credit, which banks usually use for trade facilitation processes.
  • Article 6. For auctions, bulk sales, and asset liquidations, turn to Article 6. Most US states believe that the article is obsolete. Additionally, the UCL suggested a repeal that most states have adopted.
  • Article 7. You can find laws on documents of title, bulk sales, warehouse receipts, and BoL or bills of lading.
  • Article 8. The article covers all about investment securities. Moreover, you can find here laws about securities holding through intermediaries.
  • Article 9. This article discusses agricultural liens, consignments, promissory notes, security needs, and personal property secured transactions.

Until today, the UCC goes through constant revisions addressing specific articles.

Special considerations

Every US state can either adopt the UCC as it is written or adopt and modify some provisions and regulations of it. Louisiana did not adopt the UCC Article 2 as written. Additionally, the state also refused to adopt Article 2A, which explicitly tackles the rental and lease of personal properties which are not considered real estate.

In the same manner, California also implemented some revisions in implementing its version of the UCC. As the state used the UCC, they did not adopt the real estate contracts laws. For real estate purchases like warehouses, the laws regulating the process will be the ones specifically set by California and not the state’s commercial code. Additionally, the UCC also does not cover the services contracts in California. The state insurance laws cover these activities instead. Activities under service contracts include interior decorations, painting jobs, auto repairs, etc.

Reasons to use the UCC list in finding merchant prospects

For MCA lenders, it would be a treat to know that the UCC list provides a comprehensive collection of business data available to help you find prospects. The following are some of the essential benefits why the UCC will be vital for your business.

  • Acquire accurate information. When you source data from a government-related list, you can ensure its top-notch accuracy. As you host these comprehensive data sets, you can get information from merchants, including location, contact details, and the industries they belong to. Furthermore, you can use the information to build and establish your contact list and get ready to optimize various communication initiatives.
  • Streamline your leads. Since the UCC list provides accurate and thorough data, you can easily segment small markets for your MCA solutions. Explore beyond the traditional geographic, firmographic, and demographic data which usual MCA providers use to reach out to merchant prospects. Instead, you can offer messages which can be more relevant and valuable to businesses in your target industries.
  • Check out collateral and property deals. With how extensive the available data in the UCC list, you might get to see a business’s asset dealings and properties, which generally include the following:
    • Check out claims against fixtures or personal properties.
    • Determine location, ownership, and disposition of collateral
    • Discover whether personal properties have been pledged
    • Reveal various financial relationships with other companies or entities
    • Identify whether the assets are available for seizure or attachment.
  • Complement with prospecting resources of businesses. The information from the UCC list will extensively work with other companies prospecting resources. This includes business credit reports, bankruptcy lists, and the United States Business Database. Once you combine the finance information and the critical property from the UCC list with the other resources, you will have a comprehensive and complete view of prospects for your MCA services.
  • Be ahead of the competition. As you integrate the UCC list into your financing marketing initiatives, you sure will outrun the majority of your competitors. By maximizing the regular updates in essential sourcing data, you will know when the business needs funding which you can immediately provide before other providers.

The drawbacks

Looking at the considerations and amendments made by some states about the UCC, it can also be fitting to look into some of the disadvantages this commercial code has. Here are some of them.

  • Not all states fully adopted the UCC as written. This means that there could be some differences when a business makes business transactions with another state. Yes, all fifty states in the United States use the commercial code. However, it might slightly affect some transactions in the long run. Technically, not all states have similar sets of laws under UCC.
  • During international trade, not all countries have the same sets of laws as the US. Consequently, some of the crucial principles in business transactions might be overlooked. Additionally, business processes like contract formations, interpretations, and remedies in case of contract cancellation can be different in other countries.

Contents of a UCC list

The UCC list is more than just business names and contact details. The list has some essential data that can help record prospects for your MCA business.

  • Contact name
  • Contact title
  • Company name
  • Postal mailing address
  • Email address
  • Phone number
  • SIC Code and other details
  • Collateral
  • Employees
  • Sales volume

Industries using the UCC list

The merchant cash advance industry indeed maximizes the use of UCC lists. However, various businesses and industries also utilize this list to get possible leads for new customers besides MCA.

  • Mainstream and local banks
  • Accounting firms
  • Legal aids
  • Investment firms
  • Advertising and marketing companies
  • Business service companies
  • Web service firms
  • Consulting firms
  • Contractors for office supplies


Why is uniformity essential in business transactions?

The UCC aims to simplify the complex law that applies to business processes and transactions. Additionally, the UCC nurtures interstate commerce allowing businesses to partner with distributors and manufacturers across the US rather than limiting them to only one state.

Who does UCC protect?

In general, the UCC protects all individuals involved in the business. The establishment of the UCC was to make interstate business transactions more accessible, considering the different laws implemented by each state in the US. Also, it aims to standardize commerce among states, whether that transaction occurs between businesses or individuals.

How does the UCC list become a significant source of MCA leads?

UCC list is one of the primary sources in generating MCA leads because of its comprehensive and massive data collection. As you gather all the necessary information, you can immediately streamline your list and directly approach small business owners for MCA offers and other options. Also, the data from the list is all verified, ensuring that you only get the best and factual data.

What is a UCC lien?

In some cases, people call a UCC lien a UCC filing. It is generally a form the lender files to notify their interest in the debtor’s property. Properties can either be business or personal. The primary purpose of the UCC lien is for lenders to assume temporary ownership of the debtor’s property. The lender’s ownership will be forfeited once the debtor settles the final repayment.

Why is it necessary to file a UCC-1?

The primary reason is to protect your investments as a lender. Since the document will prove the lender’s temporary ownership of the borrower’s collateral, the lender will likely have the right to assume ownership fully if something happens to the borrower or they fail to pay off the loan amount. Secured lenders are usually taken care of first in terms of the division of assets. Suppose you are unsecured, which means you failed to file UCC-1, and your probability of recovering collateral is relatively poor.

How long is the filing valid?

One filing is suitable for five years. Suppose the borrower is still in debt or filed for bankruptcy; you will not get a secured interest if the filing has exceeded five years. This will turn you into an unsecured lender, which can possibly result in losing most of the assets tied into the agreed loan. To avoid this, you can extend the UCC-1 filing before the 5-year period ends. They call it the continuation statement, which you need to file six months prior to the expiration date.