Extending Credit to the Food Beverage, and Restaurant Industry? Reduce Risk and Stress

The foodservice industry is a massive industry. Restaurants of every fair, flair and flavor line the streets of communities nationwide. In a bustling economy, the industry carries an inordinate amount of credit risk, as restaurants have a high rate of failure. When the economy takes a dip, the foodservice industry feels it first. Are you protected? Our UCC Services Group offers UCC filing, monitoring services and a recovery program that will protect you in the event that your customer defaults or files for bankruptcy.

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The Restaurant Failure Risk is Real

If you are supplying goods, equipment or services to food, beverage and restaurant industries, you MUST take steps to secure your receivables. These industries are historically the riskiest industries for creditors. In fact, the National Restaurant Association estimates that one in three restaurants won’t survive their first year.

As a creditor supplying goods, equipment or services to the foodservice industry, how can you reduce your credit risk? UCCs.

UCC filings through NCS Credit help provide an opportunity to collateralize or “secure” your goods and/or accounts receivable by leveraging the personal property assets of the customer. Properly perfected security interests via UCCs will help mitigate risk and ensure filings maintain compliance.

Here is more…

Problem #1

Restaurants Have a High Rate of Failure

The foodservice industry carries an inordinate amount of credit risk. Restaurants in particular have an estimated 30% failure rate. Monitoring services and a recovery program that will protect you in the event that your customer defaults or files for bankruptcy are essential. Our UCC Services Group helps mitigate the risk by establishing a secured position.

Problem #2

Restaurants are Frequently Sold

When a customer sells their restaurant, often there is language within the sale of the business that relieves the buyer of any responsibility from the previous business owner’s debt. Ultimately, erasing debt linked to the business becomes a condition of the sale of the business. UCC filings act as a lien on the business, so before the title passes from one party to another, the lien should be acknowledged and either settled or renegotiated.

Blog

Failure to Use the Proper Forms Can Prevent Perfecting Your Security Interest

When preparing documentation to perfect a UCC filing, the requirements may not be too complex, but you must strictly follow the requirements.
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We’ve Helped Others Just Like You

If you extend credit, regardless of industry, our services will reduce your credit risk. But, you don’t have to take our word for it. Learn how some of our clients have implemented UCC filings or a mechanic’s lien process to reduce their risk and improve their cash flow.

NCS at a Glance

97%
Reduced Risk
97% of clients have reduced their risk when extending trade credit and 53% have increased their sales as a secured creditor.
10
Years Experience
Our account representatives have an average of 10 years experience in providing clients with customized solutions.
73%
Client Loyalty
73% of clients who did business with NCS Credit in 2005 continue to do business with NCS Credit today and 87% of clients view us as their strategic partner.

How we’ve helped others

Read Case Studies
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    Dottie Herbert, Director of Credit
    Sysco Boston

    We had a situation with a large volume customer with no personal guaranty who closed their doors unexpectedly…leaving us with a past due balance of $189,000…Without us being a secured creditor with a UCC filing in place, I truly believe that we would have only received cents on the dollar under the unsecured general creditors. Sysco Boston has been paid due to the utilization of the UCC and the services of NCS. NCS makes this process easy.

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    Gladys Greene, Area Credit Manager
    US Foods

    I just wanted to pass along a success story from using the UCC filing process with NCS. We avoided losing $85,927 because we used a UCC to secure our receivables. Our customer was selling their restaurant and the sale was initially turned down because of the UCC filing. The customer had a history of returned checks. When they discovered the lien, they asked us to terminate it so they can proceed with the sale. We explained we could not do that without being paid. This resulted in us collecting the full amount of $85,927 that otherwise would have taken us probably a year to collect! The UCC process is certainly a great tool that gives us the leverage we would have never had.

  • ucc testimonial graphic
    Michael Wisner, Region Credit Manager
    US Foods

    We were notified that a customer was selling a location which at the time had an AR in the mid-six figures, all of which was past due…The sale took place and our Credit Manager was contacted by the attorney who had the check in hand for the full amount. Had we not had the UCC filing in place we would not have received this payment and very likely, only cents on the dollar.

    This success paid for the cost of filing previous UCC’s and future UCC filings for years to come. This was definitely a win when looking at the cost benefit/ROI for securing our receivables with the UCC process and utilizing the services of NCS.

People and modern technology connection

Our broad network helps us help you

Each industry is unique, with its own set of risks and challenges. Our expertise is vast, our resources are bountiful, and our experience has provided us the opportunity to develop and refine tailored and successful solutions, for credit professionals just like you. Whether you need to improve your cash flow and work capital, reduce bad debt write-offs, or simply need to free up your credit department’s time, our team is prepared to ensure you are in the best possible position to get paid.

What sets us apart?

We’re here to back you up, and get you paid.

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Empowering heroes

Utilize NCS as a resource and a partner and become the person at your company who can get things done.
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Multiple solutions

Whatever your challenge, we have the tools and expertise to meet it–and get you paid.
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Decades of experience

We’ve been a trusted partner to our clients for more than half a century.
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“One size fits one” approach

No two of your accounts are the same. We respect and understand that. Our entire approach is built around finding solutions that best suit your needs.
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Online Service Option

Access your secure online portal 24/7 and save time and paperwork.
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Flat Fees

Take the guesswork out of it. Know your costs up front.