Many times when performing due diligence we come across a tangled mess of old UCC filings which prohibit us from moving forward. This may entail proving that old loans have been paid off, finding the originator of the old UCC and getting authorization to terminate old liens.
Poor tracking and bookkeeping often result with these sorts of loose ends, so a factoring company is well equipped to come in and clean it all up. Moving forward this allows the company to never have to revisit these old loans and liens again. I can be a nuisance at the time when you are looking to get the factoring started, but in the long run it’s a must do of a should have done.