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What You Need to Know About Liens and Your Business

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Business Loans and Documents.

What to Know

Business owners who take out loans for equipment, property or working capital need to understand how liens can affect their business in terms of the potential problems they can cause and what should be avoided.

Lenders usually file liens on business loans; these liens are filed in succession and a lender always wants to be in the first lien position. This means that if the business loan goes into default, that lender will be the first paid.

If you have outstanding business loans and need to borrow more, that would mean the lender you are seeking a loan from would be in a second or third lien position. This could translate into higher interest rates on your business loan, so it is imperative you review your outstanding loans to ensure you are getting the capital you need at a price you can afford.

If you are applying for a short-term loan, your lender may take a blanket lien, which gives them the right to seize other assets in the event of nonpayment. If the blanket lien is in the first lien position, this could cause big problems down the road.

All lenders must file a UCC-1 financing statement when they file a lien, so business owners can check the status of their company’s liens by searching the Secretary of State’s website in the state where your company is headquartered.

Business owners can sometimes overlook important lien information in the fine print of loan documents, which is why it is important to have your business attorney review your loan documents before you sign on the dotted line.

Having a business attorney that understands the individual needs and unique circumstances of your company is key to helping your business thrive and prosper. If you are interested in learning more about legal protection strategies for your business and how we work with you as a partner in protecting your company, call us today to schedule your comprehensive LIFT™ (legal, insurance, financial and tax) Foundation Audit.

 

Prop 19: Reduce Property Taxes Before February 16th!

Proposition 19 will affect each and every person who owns a property, whether it’s a primary residence, a vacation home, a rental property, or a commercial property.

According to the new law, we have a limited window to take action in order to lock in our property taxes under the old rules. 

Bridge Law will be hosting a free webinar on Saturday, November 28 discussing Prop. 19 and what you need to know. There are strategies available to us if we plan now!

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We want you to feel comfortable discussing your legal issue with us, so we offer a free consultation to learn about your problem. Contact us today to setup a time to come in and talk with our team.

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Contact Us Today

We want you to feel comfortable discussing your legal issue with us, so we offer a free consultation to learn about your problem. Contact us today to setup a time to come in and talk with our team.