Listen Up UCC Filers-Protect Your Customer List From CompetitorsUCC, Reduce Financial Risk
Does it seem sometimes seem like your competitors have a copy of your customer list? Well, they just might.
“No way!” you say. “How did that happen?”
It’s easier than you might think. Every time a secured party perfects a security interest by filing a financing statement, one result of that filing is to reveal the secured party’s debtor, its customer, in the public record.
And, just like one can search a Secretary of State index by debtor name to for liens and more to determine a potential debtor’s current financial obligations, one can also search a Secretary of State’s index by secured party to uncover any secured party’s debtor list…its customers.
If this is happening to your firm, perhaps it’s time to consider a Secured Party Representative Service. This service allows secured parties to perfect their security interests as before BUT with one important difference: the secured party’s name is no longer listed on the financing statement. So, when a competitor runs a secured party search on your firm’s name, your customer list is protected.
Interested to learn more? Click here to schedule a consultation with one of our UCC experts to learn more about how Secured Party Representative Service may be the answer to keeping your customer list confidential.