UCC Filing Services - NCS Credit

What is UCC Article 9?

Article 9 of the Uniform Commercial Code (UCC) governs secured transactions in personal property and provides an opportunity for trade creditors, like you, to secure accounts receivable, inventory or equipment by leveraging the personal property assets of your customer.

Under UCC Article 9, a security interest is an interest in personal property or fixtures and secures payment or performance of an obligation. Many creditors require their customers to sign a Security Agreement, pledging specific personal property as collateral to grant a security interest to the creditor. Then, if the customer defaults, the creditor can use the collateral to recover payment.

What is a UCC filing?

A UCC filing, also known as a UCC Financing Statement or UCC-1, is a document filed with the Secretary of the State which serves as public notice of a creditor’s security interest in certain collateral owned by their customer.

Minimize risk

Maximize profit

Peace of mind

Why file a UCC-1?

Protection. Yes, in an ideal business relationship, bills are paid in full and on time – every time. But in a credit-based economy, there is little chance for ideals.

Filing a UCC-1:

Protects A/R, inventory and equipment
Reduces write-offs
Creates sales opportunities

Worried about what a UCC Financing Statement means for your customer? Relax! There is no cost to your customer, and it doesn’t negatively impact their credit rating.

Who should file UCC Financing Statements?

If you are extending credit to your customer, you should implement a UCC filing program!

Distributors

Equipment Rental

Material Suppliers

Financial Institutions

Leasing Companies

Factoring Companies

Which filing is right for your business?

Not sure which best fits your business? Don’t worry, we can help!

Blanket

A Blanket filing is a security interest in all assets of your customer and is typically used in financing or selling services.

Purchase Money Security Interest (PMSI)

A PMSI filing provides the same benefits as a Blanket file, plus you have priority of repossession of your inventory or equipment.

Consignment

A Consignment filing, frequently used in retail, protects your goods in your customer’s possession until your customer sells the goods.

Bailment

A Bailment filing protects your goods while they are temporarily in your customer’s possession for improvement.

Warehousing

A Warehousing filing protects your goods when your inventory is held at a third-party location.

Installment / Promissory Note

A Promissory Note is an agreement to pay a debt in installments or specific intervals. Filing a UCC-1 creates a public record of the debt.

How to start a UCC filing process.

Determine when and where security is applicable for your business. For example, you may deem a filing is necessary for all customers with a credit line greater than $10,000. Once you’ve set a threshold, you’ll have your customers sign a Security Agreement, which allows you to file a Financing Statement.

A little overwhelmed? It’s ok – the NCS Team is your team! Powered by our knowledgeable staff and fueled by technology, we’re prepared to assist with and manage all aspects of the UCC filing process for you. We believe everyone deserves to get paid for the work they do!

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