The word is doing Uniform Commercial Code work, not everyday work. A business is the debtor because it granted an interest in its assets, and it stays the debtor whether the balance is live, cleared three years ago or never drawn — the filing records no amount and no status.
Full guide
What is a UCC-1 filing, and why brokers careThe public record that tells you who already has a position.
Related terms
UCC-1 financing statement
A public notice filed with the secretary of state recording a secured party’s claim against a business’s assets.
Secured party
The party named on a UCC-1 as holding the security interest in a business’s assets — on an advance filing, usually the funder.
DBA
A name a business trades under that differs from its registered legal entity name.
Merchant application
The signed form capturing the merchant’s business details, requested amount and authorisation to pull information.
UCC search
A query run against a state filing office’s UCC index to find the financing statements naming a particular business as debtor.