There are factoring companies who find ways to immediately file a Uniform Commercial Code (UCC-1) financing statement as soon as you contact them. This requires your permission, but some factors find creative ways to have you sign off before you actually sign a factoring contract. It may be in the wording where you sign the new client application. Look for permission to file financing statements, or something along those lines. There is only one reason these companies do this, to make it difficult to go to another factoring company. Many times we see situations where a UCC-1 has been filed and we have to ask our new client to go back to another factor they only had discussions with, to get them to terminate their UCC. This totally unnecessary impediment usually adds time and expense to getting your factoring set up.
At Creative Capital Associates we normally wait until all the contracts have been signed and returned to us before filing a UCC-1. There are too many situations where given the best intentions the factoring relationship never comes to fruition. Beware of this activity because it is probably a harbinger of other motives.