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What to Include in Your Final Demand Letter For a UCC Filing

Final Demand Letter for your UCC filing is crucial. Here are the complete parameters you include in your final demand letter when you go for UCC filing

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About this course

description
lessonOverview

The demand letter is often overlooked as a collection tool for UCC filers, but it can be a cost effective alternative to the processes of repossession or litigation.

As we've mentioned before, demand letters are not kind, gentle, love notes. Demand letters are typically harshly worded, authoritative notifications -- after all, the definition of demand is "...an insistent and peremptory request, made as if by right," which loosely translates to mean "It's mine! You have it, pay me or give it back."

What should I include in a demand letter?
Always remember to be factual & succinct. When you have filed a UCC, you should use that filing as leverage within your demand letter. Make sure to include the following information in the demand

What to include in a final demand letter when you have a UCC filing
 
Yes No Item Being Checked
Date of the demand
Your company's name and contact information
Your debtor's name and contact information
The date the Security Agreement was executed
The UCC filing number and the date of the filing
Reference to the Collateral Description
Reference to the Default Terms
The amount of the debt
The due date of the debt
How the debt should be paid
The consequence of not paying the debt

 

You are probably wondering "How on earth can I be succinct when I have to include ALL of this information?!" And the answer is to remember to stick to the facts, no additional commentary or emotion need be in the demand, just the facts.

Who should receive a copy of the demand letter?
The demand should be served upon your debtor and it is recommended you include a copy of the Security Agreement and a copy of the UCC filing.

There's a consequence for every action
It is critical to always include a description of the consequences for not paying the debt with language such as:

"...If payment is not received, we may pursue all available legal remedies available under the Ohio Uniform Commercial Code."

Can I send a demand letter even if I didn't file a UCC?
Yes! There are no prerequisites for sending a demand letter, other than the outstanding debt.

When would I send a demand letter?
You may find a demand letter to be most beneficial before attempting to repossess your goods or before proceeding with enforcement of the UCC filing under the Uniform Commercial Code.
instructor
name title image description Ins
David Schmidt Order-to-Cash and SME Risk Expert, Credit Today Dave is an order-to-cash and SME risk expert with over 27 years of experience. He focuses on the order-to-cash side of the working capital coin applying his knowledge and expertise with receivables, credit, and collection best practices and technology to maximize clients' performance. Dave aims at providing insights into the small and medium enterprise (SME) community by delivering actionable intelligence solutions for clients to drive efficiency, manage risk and grow revenue. Dave is an order-to-cash and SME risk expert with over 27 years of experience. He focuses on the order-to-cash side of the working capital coin applying his knowledge and expertise with receivables, credit, and collection best practices and technology to maximize clients' performance. Dave aims at providing insights into the small and medium enterprise (SME) community by delivering actionable intelligence solutions for clients to drive efficiency, manage risk and grow revenue.
related
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KPIs and Reporting Fundamentals of UCCs, Liens and Purchase Money Security Interest Get a detailed overview on the fundamentals of UCCs, liens and purchase money security. Offset open balances and reduce the risk of selling to an otherwise high-risk customer. https://academy.highako.com/fundamentals-of-uccs-liens-and-purchase-money-security-interest  
Deductions Resolution How to Secure Your Customer's Debt with UCC Filings and Liens This online course will help you understand UCC filings and liens and how it could minimize write-offs and stabilize working capital. https://academy.highako.com/ucc-filings-and-mechanic-liens-process  

 

About this course

description
lessonOverview

The demand letter is often overlooked as a collection tool for UCC filers, but it can be a cost effective alternative to the processes of repossession or litigation.

As we've mentioned before, demand letters are not kind, gentle, love notes. Demand letters are typically harshly worded, authoritative notifications -- after all, the definition of demand is "...an insistent and peremptory request, made as if by right," which loosely translates to mean "It's mine! You have it, pay me or give it back."

What should I include in a demand letter?
Always remember to be factual & succinct. When you have filed a UCC, you should use that filing as leverage within your demand letter. Make sure to include the following information in the demand

What to include in a final demand letter when you have a UCC filing
 
Yes No Item Being Checked
Date of the demand
Your company's name and contact information
Your debtor's name and contact information
The date the Security Agreement was executed
The UCC filing number and the date of the filing
Reference to the Collateral Description
Reference to the Default Terms
The amount of the debt
The due date of the debt
How the debt should be paid
The consequence of not paying the debt

 

You are probably wondering "How on earth can I be succinct when I have to include ALL of this information?!" And the answer is to remember to stick to the facts, no additional commentary or emotion need be in the demand, just the facts.

Who should receive a copy of the demand letter?
The demand should be served upon your debtor and it is recommended you include a copy of the Security Agreement and a copy of the UCC filing.

There's a consequence for every action
It is critical to always include a description of the consequences for not paying the debt with language such as:

"...If payment is not received, we may pursue all available legal remedies available under the Ohio Uniform Commercial Code."

Can I send a demand letter even if I didn't file a UCC?
Yes! There are no prerequisites for sending a demand letter, other than the outstanding debt.

When would I send a demand letter?
You may find a demand letter to be most beneficial before attempting to repossess your goods or before proceeding with enforcement of the UCC filing under the Uniform Commercial Code.
instructor
name title image description Ins
David Schmidt Order-to-Cash and SME Risk Expert, Credit Today Dave is an order-to-cash and SME risk expert with over 27 years of experience. He focuses on the order-to-cash side of the working capital coin applying his knowledge and expertise with receivables, credit, and collection best practices and technology to maximize clients' performance. Dave aims at providing insights into the small and medium enterprise (SME) community by delivering actionable intelligence solutions for clients to drive efficiency, manage risk and grow revenue. Dave is an order-to-cash and SME risk expert with over 27 years of experience. He focuses on the order-to-cash side of the working capital coin applying his knowledge and expertise with receivables, credit, and collection best practices and technology to maximize clients' performance. Dave aims at providing insights into the small and medium enterprise (SME) community by delivering actionable intelligence solutions for clients to drive efficiency, manage risk and grow revenue.
related
image tag title description link contentType
KPIs and Reporting Fundamentals of UCCs, Liens and Purchase Money Security Interest Get a detailed overview on the fundamentals of UCCs, liens and purchase money security. Offset open balances and reduce the risk of selling to an otherwise high-risk customer. https://academy.highako.com/fundamentals-of-uccs-liens-and-purchase-money-security-interest  
Deductions Resolution How to Secure Your Customer's Debt with UCC Filings and Liens This online course will help you understand UCC filings and liens and how it could minimize write-offs and stabilize working capital. https://academy.highako.com/ucc-filings-and-mechanic-liens-process