Undisclosed debt and liens are one of the biggest risks of equipment transactions, and Ground Clearance LLC urged equipment buyers to be proactive with their lien searches, especially in the down economy.
“Purchasing equipment in a good economy can be risky. The weak economy has pressured some equipment owners to liquidate, with lien disclosures less likely,” said Ground Clearance Owner Sue McKee.
After an equipment purchase, buyers are responsible for payment of liens, undisclosed or not, or are required to pay legal fees to enforce payment by the original owners.
“I’ve seen the frustration and financial ruin that can cause,” McKee said, “not to mention the erosion of business relationships.”
McKee encouraged equipment buyers to create proactive lien search policies for all purchases to avoid such problems. Having a service in place to conduct UCC searches and contact secured creditors to verify debt on equipment should be a vital part of every equipment purchase decision, and the cost of lien research is often a pass-along fee to the seller, according to McKee.
Ground Clearance LLC offers the benefit of nearly a decade of lien search and creditor communication experience to buyers, lenders, auction houses and others who hold interests in industrial and agricultural equipment. Established to assist both companies and individuals with lien search needs, Ground Clearance is focused on helping the industry do a better job of identifying debt prior to purchasing used equipment.
For more information, visit www.groundclearancellc.com.