legal
Blanket Lien
A blanket lien is a security interest covering all business assets, equipment, inventory, receivables, rather than one specific item.
Last updated Reviewed by ICG Funding
Definition
What it means.
Blanket liens are filed via a UCC-1 Financing Statement and give the lender priority over other creditors in the event of default. They are standard on revenue-based funding, term loans, and lines of credit.
A blanket lien is not the same as a lien on a specific building or piece of equipment. It is a "floating" claim on the changing mix of assets the business owns at any moment. Multiple blanket liens on the same business create priority disputes and are one reason stacking is risky.
Now what?
Get an offer that accounts for blanket lien.
Soft-pull credit check. Quick application. No obligation.