In the fast-paced world of alternative lending, identifying potential borrowers at the right time is crucial for success.
One powerful yet underutilized tool that lenders can tap into is UCC (Uniform Commercial Code) financing activity data. By monitoring this data, sales organizations can pinpoint businesses actively seeking financing and provide tailored solutions that meet their evolving needs. This blog explores how UCC filings can be leveraged to target borrowers, with a special focus on real-world use cases like construction companies, and highlights how Springstreet.io’s innovative tools empower lenders to increase revenue and minimize risk.
The Growing Need for Supplementary Financing
Many businesses today find themselves in a position where their initial loan does not fully cover their financial needs. A recent study found that 40% of small businesses seeking financing do not receive the full amount they initially applied for, often leading them to pursue multiple loans to bridge the gap. This trend is particularly prevalent in capital-intensive industries like construction, manufacturing, and logistics, where the costs of equipment, labor, and materials often exceed initial projections.
Almost half of all small business borrowers only receive partial loans to satisfy their financial needs
For example, consider a construction company that has just secured a major contract for a large-scale project. To execute the job, they might take out an equipment financing loan to purchase heavy machinery. However, the loan might not address other essential cash needs such as labor costs, material purchases, or subcontractor payments. Faced with these gaps, the company may turn to alternative lenders for supplementary financing. This creates a timely opportunity for lenders to step in and offer tailored financial solutions.
How UCCs are signal for Active Borrowers
UCC filings are public records that indicate when a business has secured financing using assets as collateral. By monitoring these filings, lenders can gain valuable insights into a borrower’s financial activity and needs:
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Identifying Active Borrowers: UCC filings highlight businesses that have recently taken out loans, signaling potential demand for additional financing.
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Understanding Borrower Intent: The type of collateral listed (e.g., equipment, inventory) provides clues about the borrower’s specific needs and industry context.
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Timing Strategic Outreach: Knowing when a loan was secured allows lenders to time their outreach when businesses are most likely seeking supplementary financing.
Monitoring recently-filed UCC data provides tremendous value to Alternative Lenders and sales organization to improve their sales operations and establish more effective outreach.
UCC data can be used to identify active, underserved borrowers who are seeking financing
For instance, a construction company might secure equipment financing for a new bulldozer, but still require additional funds for labor, materials, and permits. Identifying this information upfront can improve sales efficiency and improve originations.
Springstreet.io: Empowering Lenders with Actionable Insights
Springstreet.io takes the guesswork out of leveraging UCC filings. Our platform provides lenders with access to comprehensive UCC financing activity data, along with enhanced reporting & monitoring capabilities that help identify and prioritize high-potential leads.
Here’s how Springstreet.io can transform your sales efforts:
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Improved Targeting of Prospects: Springstreet's advanced reporting capabilities allow users to identify customers who match their appetite. Lenders who are interested in specific details of a borrower (i.e a lender who is only willing to finance 2nd-lien positions) can receive a consistent top-of-funnel demand.
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Improved Timing of Outreach: Springstreet can provide a consistent, filterable feed of UCC activity to help identify business who are actively seeking financing solutions. Many business remain underfunded and UCCs can signal a great time to reach out to prospects.
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Increased Efficiency: By automating the monitoring and analysis of UCC filings, Springstreet.io frees up sales teams to focus on building relationships and closing deals, rather than sifting through raw data.
Unlock Revenue Growth with Proactive Lending
By leveraging UCC financing activity data through springstreet.io, alternative lenders can stay ahead of the competition, build stronger relationships with borrowers, and increase originations.
Improve your sales efficiency with well-timed, targeted outreach
Don’t let valuable opportunities slip through the cracks. Partner with Springstreet.io to harness the power of UCC filings and take your sales efforts to the next level. With our tools and insights, you can identify target-borrowers, offer solutions that meet their needs, and grow your business with confidence.
Ready to unlock the full potential of UCC data? Visit springstreet.io to learn more and request a demo today.