---
title: Top 5 Reasons You Should File UCCs - NCS Credit
description: If reducing your DSO, mitigating your risk & improving working capital aren’t reason enough to file UCCs, here's a few more reasons.
---

[Blog ](https://www.ncscredit.com/education-center/blog)

# [Top 5 Reasons You Should File UCCs - NCS Credit](https://www.ncscredit.com/education-center/blog/reasons-file-uccs)

 Written by [wpengine](https://www.ncscredit.com/education-center/blog/author/wpengine) | Mar 11, 2019 11:00:28 AM

## Top 5 Reasons You Should File UCCs

If reducing your DSO, mitigating your risk and improving working capital aren’t reason enough to file UCCs, I’ve compiled a list of a few more reasons.

Five more reasons!

#### #1. Sell More!

A properly perfected security interest gives you the extra security needed to sell to [marginal accounts](https://www.ncscredit.com/education-center/resource/infographic-increase-your-sales-with-ucc-filings/) that were previously off limits.

The **marginal accounts** may have included those potential customers that came to you with little to no credit history, your existing customers who are teetering at the edge of a maxed-out credit line, and even the accounts where you couldn’t quite meet the same price as a competitor.

**Sometimes it’s not about beating your competitors in price**; it’s quite possible your competitor wouldn’t extend enough credit to this entity — if you can extend the credit, you can get the business. **File that UCC!**

#### #2. Fewer Write Offs!

It’s simple. Fewer write offs lower the costs associated with your product.

These lower costs mean you can sell your product at a lower price while maintaining effective profit margins.

As you’d imagine, selling at a lower price makes your company more competitive.

If you are more competitive, you have an opportunity to obtain a larger share of the market. **Do the math: more sales + stable profit margins = life is good!**

#### #3. Everyone’s Doing It!

Growing up I used to whine **“But Mom, everyone else is!”** And she would respond with the ever popular “If everyone jumped off a bridge, would you do it too?”

Well, I probably won’t jump off any bridges, but I absolutely would file UCCs.

**UCC filings are a common business practice; just as common as completing a credit application.** Think about it, your mortgage, your car loan, an equity line of credit, all have security language written in to the documents you sign — banks won’t just throw money at you without security.

#### #4. Low Costs!

The overall UCC process is generally quite economical.

The fees (except for a few states) are low and the long-term maintenance doesn’t require significant monetary investment.

**For 10 cents per day or less, you can secure collateral in agreement with your customer’s promise to pay. **

What’s better than low fees for you? No fees to your customer! Filing a UCC doesn’t cost your customer a thing and contrary to popular belief, a UCC does not hurt their credit.

#### #5. BECAUSE YOU CAN!

It may seem like I’m shouting and that’s because I am: FILE UCCS BECAUSE IT IS **YOUR RIGHT TO BE A SECURED CREDITOR**!

OK, no more shouting. I just wanted to be sure you heard me: as a creditor, you have the right to take precautions to protect your interests.

In the unlikely event that your customer files for bankruptcy protection or defaults on the terms within your agreement, a properly perfected security interest elevates your company to a secured creditor position.

I needed a #6 so I could say:

#### #6. Don’t Be Skeptical!

Let’s look at the [facts](https://www.ncscredit.com/education-center/resource/infographic-myths-and-facts-of-ucc-filings/):

- **Fact**: In bankruptcy, **secured creditors have priority** and are paid before unsecured creditors.
- **Fact**: In the event of default, a properly perfected security interest provides the **right to repossess**.
- **Fact**: UCCs will not hurt your sales opportunities, in fact, **UCCs promote sales opportunities** by providing security when selling to marginal accounts.
- **Fact**: UCCs **will not impair** your customer’s **credit rating**.
- **Fact**: UCCs are a **common business practice**.

[View full post](https://www.ncscredit.com/education-center/blog/reasons-file-uccs)

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