Evaluating State UCC Search Options Series # 3: Benefits of a State Direct Database Search
UCC, Due Diligence
This week, we continue our series on evaluating state UCC search options. Please refer to our previous blog posts for a discussion of the benefits and drawbacks of a certified UCC search. Now, we turn our attention to the benefits of a state direct database search.
What is a State Direct Database Search?
We are using the term “state direct database search” to describe a UCC search that is generated using an online search feature on a state filing office’s website. These are plain (also known as uncertified) search reports that the user produces by conducting the search using the state’s search engine.
Lower Cost Alternative
One of the main benefits of a state direct database search is that they represent an affordable alternative to a certified search. Most states charge between $15-25 for a certified listing, sometimes more. Looking for a more cost-effective UCC search solution, some people turn to a state direct database. Many states offer a no-cost UCC search feature on their website while other states charge a small fee that users can bill to a prepaid account or credit card.
Immediate Results
In our discussion of the drawbacks associated with a certified search, we noted that the turn-around time for a certified listing is often slow. Since a state direct database is an online solution, users have instant access to their search results.
May Reveal Name Variations
Finally, some state direct search systems offer broad-based searching features that can help a searcher identify name variations and locate filings that have been indexed incorrectly at the filing office. Broad-based name searching refers to features such as wildcard characters and truncated search strings that provide a broader, more inclusive search result.
Keep in mind though that each state direct database is different; they do not all offer the same functionality. Some employ search logic that will reveal name variations, but others utilize exact name search logic that will return results only for those filings that represent an exact match to the search name.
Check back next week for the Drawbacks of a State Direct Database!