Risk Management Blog

UCC & Corporate Due Diligence

Resource Guide for Legal and Financial Professionals

Mitigate Risk with Comprehensive Due Diligence

December 03, 2009 Due Diligence

Given the uncertainty of today’s economy, businesses across the nation are looking for meaningful ways to reduce spending. Lenders however, should be cautious where they make cuts and think twice before cutting too deeply from their due diligence budgets. Now more than ever, lenders need to have a clear picture of a prospect’s financial solvency before making their funding decision.

It is advisable to let your legal and risk management departments determine what searches to perform to best mitigate your risk for loss. That being said, the following due diligence search package provides for comprehensive reporting of existing financial obligations and encumbrances in the public record:

  • UCCs (and available Tax Liens or Judgments) at the State Level
  • UCCs/Fixture Filings, Tax Liens and Judgments at the County Level
  • Civil Litigation at the State Court of General Jurisdiction
  • Civil Litigation at the U.S. District Court
  • Bankruptcy at the U.S. Bankruptcy Court

Thorough due diligence searching can help lenders make funding decisions with confidence. For more information on search options, contact a public records professional. Many service companies can customize a search package to meet your specific pre and post-funding due diligence needs.

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