Equipment Finance and PMSI: A Unique RelationshipApril 05, 2018 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 in specific industries and often tend to be manufacturers (farm equipment, medical and dental equipment, freight, industrial equipment, etc.). With this being said, there are options such as buying used equipment instead of having to take them out on finance. Especially if they will be used all the time within a business, owning it would be a lot more beneficial. It could be as simple as doing some research when contacting equifyfinancial.com, for example, just so there is a better understanding of buying used equipment online.
If you’re not located in California, one equipment finance company is Equify Financial, located in Texas, who can help you with any financial issues you have to do with equipment. You can get more information here.
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.