It is becoming more and more common for factors, equipment financing companies and lending firms to request a secured party search in the UCC records of your state filing office. The results obtained are a wealth of new potential client information for your competitors. Once this secured party search is conducted against your company name, your competitor can obtain the name and address of your clients and the collateral that you are holding. This information is then used to create new business for your competitor while you miss out on continued business with the client you worked so hard to get on board.
What Can You Do to Protect Your Client Information From Your Competitor?
Under Revised Article 9, UCC Section 9-502(a)(2), a financing statement must provide the name of the secured party or representative of the secured party. Through this rule there is a provision to allow a “representative” to act as secured party for your filings. This means that instead of your name being used in the Secured Party field on the UCC form, you use a name of a representative in the field to “mask” your name from any competitors.
Unisearch’s Secured Party Representation Service provides just this service. It allows you to still perfect your security interest when you file a UCC-1, and at the same time limit the ability of your competitors in determining who your clients are. In addition, the service does not interfere with due diligence searches on the debtor name.
As your representative, Unisearch will promptly forward any inquiries regarding your filing to your designated contact, without disclosing to the inquiring party any information about your company or your interest in the UCC filing. You will be able to determine if the inquiry is a legitimate inquiry from the debtor, court, attorney or unit of government or if the inquiry is one from a competitor looking for marketing information.
Contact Unisearch Today
Don’t let another day go by with your client list vulnerable to your competitors! Contact Scott Vogt at firstname.lastname@example.org, 800.722.0708 ext 116 to learn more about how Unisearch can help you protect your client information.