Equipment Finance & Purchase Money Security Interest (PMSI)March 14, 2019 UCC, Online UCC System, Due Diligence
Equipment finance or leasing is a lending type that specializes in lending on specific collateral. Equipment finance companies can vary greatly and tend to specialize on specific industries and often tend to be manufacturers (farm equipment, medical and dental equipment, freight, industrial equipment, etc.).
One product that is unique to this industry is purchase money security interest packages, or PMSI. A PMSI filing will allow a lender to take a priority position on a specific piece of equipment or inventory they are financing even if there are other secured parties ahead of them with blanket collateral on a UCC filing. There is a specific process associated with these filings which includes a pre-search of all secured parties associated with the debtor and letters that will be mailed out advising them of the PMSI filing.
The PMSI process can be streamlined and managed through the use of a UCC Portfolio Management system for the and by partnering with a service company with expertise and experience in executing PMSI filings.
Equipment Finance and PMSI go together, the lending specifics of the equipment finance industry and the benefits of PMSI uniquely matched. If you’d like to learn how FCS can help take the headaches out of your equipment finance and PMSI management processes, please contact us today.