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How to build business credit with a Ucc-1?

https://3wayfunding.com/how-to-get-business-credit-cards, www.houstonmcmiller.com

How to build business credit using a ucc-1?

The ucc-1 is a financial instrument used by creditors to file against a piece of property or equipment in order to loan money or credit. The way it works is that you the borrower have an asset that you use as collateral. The lender or bank takes that asset and file a ucc-1. Then when the loan is paid back in full. The lender or bank files a ucc-3 to release the collateral.

The problem with using this method as an individual trying to build business credit it that the process could take anywhere from 60 days to 120 days. In that same amount of time you could have repaired your personal credit, and then applied for business credit cards or business lines of credit.

If you do not want to use your personal credit as collateral but you have 3 to 6 months of bank statements lenders will use your accounts receivable to lend you money or credit for your business. This process is a much faster process to build business credit than filing a ucc-1 financial instrument.

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