When a lender makes a loan to your business, and in the loan agreement takes a security interest (as collateral) in one or more of your assets, it may include a completed UCC-1 financing statement (UCC-1). A UCC-1 is a document that, when properly filed with the state (often the secretary of state’s office), provides notice to potential buyers of those assets, and notice to future creditors of your business that the earlier lender has a priority interest in those assets. Article 9 of the Uniform Commercial Code governs business or commercial transactions (loans, extensions of credit) that are secured by collateral, and provides for use of the UCC-1 filing. Vehicles, office equipment and fixtures, inventory, investment securities, accounts receivable, machinery, letters of credit, and other moveable, tangible items of value often serve as the collateral for a UCC-1.

In Washington State, when a lender provides a loan to a business and secures the loan with the business's assets, they often use a UCC-1 financing statement to establish their interest in the collateral. The UCC-1 is filed with the state, typically with the Secretary of State's office, to give public notice that the lender has a priority interest in the assets specified. This filing serves as a warning to potential buyers and future creditors that the lender has a legal claim on the collateral. Article 9 of the Uniform Commercial Code (UCC) regulates these types of secured transactions, and the UCC-1 filing is an integral part of this process. Collateral for a UCC-1 can include various assets such as vehicles, office equipment, inventory, investment securities, accounts receivable, machinery, and letters of credit.