# UCC Lien

> A UCC lien is a public notice — filed under the Uniform Commercial Code, often via a UCC-1 form — that gives a lender a legal claim on specific business assets (or all of them) as collateral until the financing is repaid.

## Key takeaways
- A UCC lien is a public UCC-1 filing that gives a lender a legal claim on your business assets and establishes their priority to be repaid if you default.
- A specific lien attaches to named collateral, while a blanket lien covers substantially all your assets and can make it harder to borrow elsewhere.
- After payoff, confirm the lender files a UCC-3 termination, since lingering filings can complicate future financing.

## How a UCC lien works

A **UCC lien** is a filing made under the **Uniform Commercial Code**, the set of
laws governing commercial transactions across U.S. states. When a lender extends
secured financing, they typically file a **UCC-1 financing statement** with the
relevant state office. This public record announces the lender's **security
interest** in your collateral and establishes their **priority** to be repaid
from those assets if you default.

### Specific vs. blanket liens

- A **specific UCC lien** attaches only to named collateral — for example, a
  financed delivery truck or a single machine.
- A **blanket lien** covers **substantially all** of your business assets, giving
  the lender broad recourse. This is common with working capital and some
  short-term products.

### A concrete example

Say you finance a **$60,000** piece of equipment. The lender files a UCC-1 naming
that equipment as collateral. Until the loan is repaid, that lien is public, and
the lender has first claim on the equipment. If you later seek another loan, the
new lender will see the filing and know the asset is already pledged.

### What to watch for

- **Scope of collateral.** Confirm whether the lien is specific or a blanket
  lien — the latter can limit your ability to borrow elsewhere.
- **Termination.** When you pay off the loan, make sure the lender files a
  **UCC-3 termination** to release the lien; lingering filings can complicate
  future financing.
- **Priority.** Earlier filings generally get paid first, which matters if you
  carry multiple loans.

Hoss Capital can help you understand which liens a financing offer requires so
you can keep your collateral and future borrowing options clear.

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