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…
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.
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.
Will Safe Harbor Ever Exist for Florida UCC Filings? Zero Tolerance
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
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.