Which funding products does this apply to?

Term Loan, Business Line of Credit, Asset-Based Lending. Each has its own page listing the funders in this directory that offer it and what each one publishes about its terms.

Are the figures here quotes?

No. Every worked example is labelled illustrative and exists to show the arithmetic. What a particular lender charges is on that lender's page, where it publishes it at all.

The Find Me Funders research desk. Some drafting is AI-assisted, and every page that is says so at the top, including whether a person has checked its claims yet.

How do I know a figure here is right?

Where a page carries the green notice, its claims were checked against the sources listed at the end and a reviewer is named. Where it carries the amber one, nobody has verified it yet and you should confirm anything you plan to act on.

Are the examples real deals?

No. Every worked example is labelled illustrative and exists to show the arithmetic. What any particular lender charges is on that lender's page, where it publishes it.

Why do you never say what a typical rate is?

Because we cannot source it. A market average assembled from lenders who do not publish prices is a guess with a decimal point on it. Where a lender publishes a figure, we show that figure and say where it came from.

Is this financial or legal advice?

No. It is general information about how these products work. Outcomes depend on your contract and your state, and a lawyer or accountant licensed where you are is the person to ask about your situation.

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Quote a paragraph with a link back. Do not republish whole articles.

Blanket liens and UCC-1 filings: what they block next

Collateral, blanket liens and what a UCC-1 on all assets stops you doing next

The security agreement decides what the lender can take. The financing statement decides what everyone else can see, and it is the second document that quietly limits your next three financing decisions.

By Find Me Funders research desk Updated 14 September 2026 997 words 4 min read

Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.

Two separate documents do two separate jobs, and confusing them is how owners end up surprised.

The security agreement is between you and the lender. It creates the security interest and describes the collateral. Under UCC § 9-108, a description in a security agreement that just says "all the debtor's assets" does not reasonably identify the collateral — the agreement has to describe it by type or category.

The UCC-1 financing statement is filed publicly, usually with the Secretary of State where the debtor is organised. Its job is to give notice to the world and to perfect the lender's interest so it beats later claimants. Under UCC § 9-504, a financing statement is sufficient if it simply indicates that it covers "all assets or all personal property". That asymmetry is why the public filing so often reads as a blanket claim even when the underlying agreement is narrower.

The practical consequence: what the lender can actually seize is set by the security agreement, but what the next lender sees when they run a search is the filing. And the next lender prices what they see.

Specific versus blanket

A specific lien attaches to identified collateral — a named piece of equipment, a particular vehicle, a specific account. An equipment loan secured only by the equipment it financed is a specific lien.

A blanket lien attaches to substantially everything the business owns: accounts receivable, inventory, equipment, general intangibles, deposit accounts, and typically after-acquired property, meaning assets you have not bought yet. See blanket lien and floating lien.

Lien position matters as much as lien scope. First position gets paid first out of the collateral. Second position gets what is left. That is why a lender in first position on everything can effectively decide whether anyone else lends to you at all. See lien position.

What a first-position blanket lien blocks

Another loan against the same collateral.A second lender can file behind you, but they are lending against whatever equity remains after the first lender is satisfied. Many credit policies decline to sit behind a blanket first position at all.

Invoice factoring and receivables finance.A factor buys or lends against your receivables and needs a first-priority interest in them. If your bank holds a blanket lien covering accounts, factoring requires the bank to release accounts from its collateral or sign a subordination agreement or an intercreditor agreement. Some will, some will not, and the negotiation takes time you may not have.

Equipment financing on new equipment.This one has a workaround built into the statute. A purchase-money security interest under UCC § 9-324 can take priority over an earlier blanket lien in the specific goods it finances, if it is perfected within the statutory window — and for inventory, if the earlier secured party is notified in advance. Equipment lenders do this routinely. It is still worth telling your existing lender rather than letting them find out from a search.

Selling the business.A buyer's counsel runs a lien search before closing. Old filings that were never terminated show up as clouds on the assets and have to be cleared, sometimes by chasing a lender that no longer exists.

Taking additional short-term funding.Many loan agreements contain a negative covenant against incurring further debt or granting further liens. Stacking a second position without consent can be an event of default on the first loan independently of whether you keep paying it. See anti-stacking clause and event of default.

Moving your operating account.Where a lender takes a security interest in deposit accounts, perfection generally runs through control, which is why a deposit account control agreement appears in the closing set. That agreement can restrict moving the account, and it is what makes a bank's right of offset practically effective.

Duration, continuation and getting it off

A UCC-1 is generally effective for five years from filing, and lapses unless a continuation statement is filed in the six months before it expires — UCC § 9-515. A lapsed filing is not the same as a terminated one, and a stale filing on the public record still has to be explained to the next lender.

Once the obligation is paid and there is no commitment to make further advances, UCC § 9-513 requires the secured party, on an authenticated demand from the debtor, to send a termination statement within the statutory period. In practice: send the demand in writing, keep the proof, and then run your own search to confirm the UCC-3 termination was actually filed. Lenders are generally cooperative and administratively slow. The filing that never got terminated is one of the most common avoidable delays in a business sale.

Personal guarantees are a different instrument

A lien attaches to business assets. A personal guarantee attaches to you. Many facilities carry both, and the guarantee does the work if the collateral falls short. Read whether the guarantee is limited or unlimited, whether it is joint and several among owners, and whether it survives a sale of your interest in the business.

Before you sign

Get a copy of the collateral description in the security agreement, not just the loan summary.
Ask whether the filing will read "all assets" and whether a narrower indication is available.
Ask in writing what the lender's position is on releasing accounts receivable if you later need factoring, and on subordinating to purchase-money equipment financing.
Run a UCC search on your own entity before you apply, so you find the forgotten 2019 filing before an underwriter does.
Diary the five-year lapse date and the payoff date, and demand termination in writing when the loan is cleared.

None of this makes a blanket lien a bad deal. Collateral is often what makes a rate possible at all. The point is that you are trading part of your future financing flexibility for today's terms, and that trade is easier to make deliberately than to discover later.