Blanket lien

A blanket lien gives a lender or funder a security interest in everything the business owns or later acquires, including receivables, bank deposits, equipment and inventory. Article 9 lets the public filing describe the collateral simply as all assets or all personal property.

It matters most when you want more financing. The first filer generally has priority in the collateral, so a second lender behind a blanket lien is exposed. Lenders and factors often ask the first party to subordinate or release its claim, and that party does not have to agree.

Before you sign, check whether the lien covers all assets or only specific items, and what it takes to have it released when the deal is paid. This is general information, not legal advice.