Glossary
What is UCC Lien?
A UCC lien is a legal claim a lender files on a borrower's business assets, documented through a UCC-1 financing statement filed with the state under the Uniform Commercial Code. It publicly records the lender's security interest in the collateral. A lien can cover specific assets, such as a piece of equipment, or be a blanket lien on all business assets. Existing UCC liens can affect your ability to get additional financing, so know what liens are on file before you apply.
Example
After funding a line of credit, the lender files a UCC-1 with the state covering the company's receivables and inventory.
Related funding
Business Line of Credit: Draw when you need it, pay for what you use.
Related terms
Questions about an offer? Your advisor will explain every term.