# Blanket lien

One security interest covering every asset the business owns.

An acquisition lender almost always takes one, and it is filed publicly as a [UCC-1](https://searchspheresource.com/glossary/ucc-filing), so it shows up in any search a future lender or buyer runs. Two things follow. Equipment financing and a line of credit both become harder while it sits there, because a second lender has nothing left to secure against unless the first agrees to release or subordinate a piece. And when you sell, the lien has to be paid off and released at closing, which is why a [payoff letter](https://searchspheresource.com/glossary/payoff-letter) is on every closing checklist. Ask what it covers and what gets released as the balance falls.

In numbers: An acquisition loan of $3.6M is usually secured by a blanket lien over 100% of the company's equipment, receivables, and inventory.

Source: https://searchspheresource.com/glossary/blanket-lien
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt