If you would like more information regarding any of our tips, please call us at 800-826-5256 or e-mail at SecureYourTomorrow@ncscredit.com
NCS Collection Services Group - Tip #32: Take Advantage of the NEW NCS Demand Letter Service
Would you like to give your customer one last chance to pay before placing a claim for collection?
Take advantage of the NEW NCS Demand Letter flat fee service and notify the debtor what action may be taken if payment is not received. The demand letter can be a valuable tool in addition to other security you may have, such as a UCC, a mechanic's lien, or a claim against a payment bond.
You can submit a request quickly; just log on to your NCS Online Services
portal, click "Service Request" under "Collection Services Group", then "Miscellaneous Services" and select "NCS Demand Letter". No Collection placement is required.
NCS Online Services Group - Tip #31: Online Services Poll Question
It’s hard to believe 3 months have passed since NCS rolled out the new Online Services website (OLS). We trust everyone is finding the new look and functionality beneficial. As always, please continue to send us your suggestions for improvement. It is paramount that we make your time on Online Services both productive and a rewarding experience
One feature you might not have tried yet is the new OLS Poll Question, which is located at the bottom left corner of the Welcome page. (The initial poll question and results are depicted below)
Our goal is to rotate in new questions every few weeks or so. For each poll we'll analyze the data and then get back to everyone with the final results, our conclusions, and related recommendations for what we are seeing in the credit world.
So the next time you are working in Online Services, take a quick second and take the poll and then look forward to:
• Reading our post poll analysis
• Learning how your current practices compare to other credit professionals
• Making improvements within your organization to match industry standards and best practices
• And most importantly, taking the poll is fun!
Have an idea for a future poll question? Please email us your idea.
NCS Construction Services Group - Tip #30: Utilize Job Information Sheets
It’s March and spring is almost here. Construction project starts will be up and you will want your lien and bond claim rights to be protected. Let the NCS Job Information Sheet help! The attached form can help you to gather basic project information including the project address and the names and addresses for those in the contractual chain, as well as the lender and surety information. It has been our experience that subcontractors and contractors are much more willing to provide the information at the start of a project, before any possible problems occur. Then, if a preliminary notice, mechanic’s lien or bond claim is later required to protect your rights, the needed information will be available to you.
Click here for sample form. Please contact NCS for further details.
NCS Online Services - Tip #29: Saving An "In Process Service Request"
Saving A Service Request
Saving an "in process service request" is very easy. At any point while filling out a service request form you can save your work and come back to it later.
The Save Button is located on the top right portion of the service request form.
After hitting "Save", you will be prompted to enter an optional Save Name and confirm (Save button). The Cancel button aborts the save process.
Retrieving A Service Request
At any point in the future you can retrieve a saved service request. The Pending List on the Welcome page shows how many saved service requests you have organized by NCS Services Group. In the example below there are two saved service requests in "Construction Services Group".
Clicking on the "Construction Services Group" link will display the following information.
For each saved service request you can perform the following tasks:
– Returns you to the service request form where you can complete the request and submit it to NCS. Note: Online Services will automatically remove the saved service request from the Pending List.
Use as Template
– Like continue, this returns you to the service request to complete and submit the saved service request, but does not remove the request from the Pending List. This allows you to use the saved request as a template.
– Removes the saved service request from the Pending List.
Saving your service request is a simple, but extremely powerful feature! Now you can save and continue at a later time:
• If you are interrupted while entering information
• If you would like more time to research important project information
• If you want to build a service request template. The templates save you valuable time because you don't have to re-enter duplicate information
If you would like more information, please call us at 800-826-5256 or email at SecureYourTomorrow@ncscredit.com
UCC Services Group - Tip #28: Maintaining Priority in Inventory
When continuing a Purchase Money Security Interests in
inventory filing, be aware of the requirement to re-notify the
previously secured creditors. Section 9-324 of the Uniform Commercial
Code outlines the requirements to establish priority in inventory. It
states that the secured party must send notification to the holders of
any conflicting security interests, and that the holders of these
conflicting security interests receive the notification within five years
before the debtor receives possession of the inventory. This means in
order to maintain priority upon continuation, all previously secured
parties will again need to be notified. Failing to do so will jeopardize
your priority position in your goods.
NCS Tip: Make sure you are searching and notifying when you continue your PMSI UCC Filings
Publication Services Group - Tip #27: Utilizing NCS QuickTrack
In Tip #17, we shared the Date Calculator, which quickly adds or subtracts a certain number of days to or from the date you enter. In today's tip, we would like to share NCS QuickTrack, which calculates state-specific next action dates based on a specific criteria you provide. By simply entering the project type, who you sold to, the state in which the project is located and your furnishing dates, NCS QuickTrack will calculate the applicable deadlines. For example, if you furnished to a private project in Ohio on 12/07/2012, the notice deadline would be 12/28/2012 and the lien deadline would be 02/20/2013.
NCS QuickTrack is a feature included within a subscription to The National Lien Digest
. To learn more about The National Lien Digest click here
UCC Services Group - Tip #26: The Proper Time to Terminate a UCC Filing
When should you terminate the original UCC Financing Statement?
Section 9-513 of the Uniform Commercial Code states that a secured party must terminate a UCC filing within 20 days of a request from the debtor if any of the following exist:
• There is no obligation secured by the collateral and no indication there will be a future obligation
• The financing statement covered consigned goods that are no longer in the debtor's possession
• The debtor never authorized the filing of the original financing statement
Otherwise, the UCC filing will remain active until the 5 year lapse date. This can cause financial complications between the debtor and their bank.
NCS Tip: Terminate your UCC filings in a timely manner.
If you need any guidance in terminating a UCC filing please give us a call.
Construction Services Group - Tip #25: Pennsylvania No-Lien Agreements
On residential projects in Pennsylvania, statute allows for an owner or prime contractor to file a waiver of lien rights (also known as a no-lien agreement). If properly filed, the waiver of lien rights can prevent liens from attaching to the property. A search can be performed for a waiver of lien rights prior to filing a lien, or you can simply proceed with the formal notice and lien.
If a waiver of lien rights was recorded, and a formal notice is served or the lien has been filed, the owner or prime contractor will generally notify the claimant that no lien rights exist due to the waiver of lien rights. If such notification is received, it is recommended to have an attorney review the document to ensure it is deemed timely and that it meets the requirements of the statute. If the agreement was properly recorded, no lien rights would be available; and if the lien had been filed, it would have to be released. If the agreement was not properly recorded, the lien may be pursued. In either event, service of the formal notice or the filing of the lien may help to prompt payment.
On commercial projects in Pennsylvania, statute allows for the no lien agreement only when a payment bond is given as substitution for lien rights.
Collection Services Group - Tip #24: It's Wise to Have Debtors Sign Promissory Notes
Here are some advantages of a signed Promissory Note:
• Legally binding.
• Affords the debtor time to repay the debt and can include flexible payment terms.
• Can include interest.
• Provides a specific date for the debt to be paid.
• Creates accountability and an obligation from the debtor.
• Alternative collection tool that is less costly than placing with an attorney.
• Should be notarized to prevent signature forgery argument if the claim goes to litigation.
Publication Services Group - Tip #23: Check the Financial Strength of the Bonding Company
Are you concerned about the financial strength of the bonding company providing the performance and payment bonds on a project? Here is some background information and references to make sure the bonding company is financially sound:
The Financial Management Service (FMS), a Bureau of the United States Treasury Department, administers the surety bond program for the federal government. Any surety companies that wish to provide bonds on federal jobs must apply and pass the evaluation process. Only financially sound companies receive Treasury recognition. The FMS reviews and monitors the financial status of the companies to be approved and publishes its list of acceptable surety companies every July 1st.
The National Lien Digest has a link to the FMS list in its "Relevant Links" section (under "Surety – U.S. Treasury Approved Bonding Companies"), along with links to the Surety Information Office and the Surety Association of Canada.
UCC Services Group - Tip #22: Conduct A Reflective Search After Every UCC Filing
Conducting a reflective search is the best practice to verify the UCC documents are indexed correctly.
A reflective search will uncover:
• indexing errors in debtor name.
• noncompliance with a particular state's laws and format.
• if change statements are not indexed to the original filing.
For more information on reflective searches click here
Construction Services Group - Tip #21: Try Using An Attorney Demand Letter
Are you looking for a collection tool to uncover the underlying reason
why you are not being paid? Try using an attorney demand letter! This
flat fee service may help prompt payment before legal fees are incurred.
for more information.