What Is a Blanket Lien?
November 1, 2026 · 3 min read · Equipment Funding Network
A blanket lien is a lender's claim on all of a business's assets, not just one piece of equipment. It usually reaches the equipment you own now, the equipment you buy later, and your receivables and inventory. It matters because the next lender will find that claim when it searches your records, and it may not be able to finance anything until the claim is dealt with.
For how liens are filed, searched and cleared, read What a UCC Filing Is, and Why Your Lender Files One.
To list what the business owes and which debts are secured, fill in a business debt schedule.
Looking at your own deal? See Commercial Truck Financing, Commercial Truck Financing in Florida and Commercial Truck Financing in Texas.
How to spot one
Look at the collateral description on the UCC-1 filing and in the security agreement. Words like "all assets" or "all business assets" mean a blanket lien. A lien limited to the equipment being financed names that equipment instead.
Where blanket liens come from
They are common on working capital loans, merchant cash advances and business lines of credit, where the lender is not lending against any one asset. They are less usual on a loan for one machine. If one shows up on an equipment deal, ask why.
What to do about one
- Before you sign, ask the lender to file only on the equipment it is financing. Some will.
- If you already have one, ask that lender whether it will carve out the new equipment or agree to stand behind the new lender on it. That is called a subordination.
- If the debt behind it is small, paying it off and getting a UCC-3 filed may be the quickest way through.
This page explains how the term is generally used. It is not legal advice, so ask your attorney about your own documents and your state.
Where EFN fits
EFN is not a lender, and it does not approve or fund deals. You describe the equipment and the business in one short application, and the first step is a soft credit pull that does not affect your score. A person then compares your deal with what each lender says it will finance. A person reviews every file before it goes to a lender, and it goes to one lender at a time, not out to a list. If nothing fits, we tell you so. EFN's service is free to you.
To start, fill out the funding request on this site. It takes about five minutes, and it does not commit you to anything.
Common follow-up questions
Can I get equipment financing with a blanket lien on my business?
Sometimes. The new lender will want first claim on the equipment it finances, so it depends on whether the existing lender agrees to that or the old debt is paid off. Say so up front, so it does not surprise anyone halfway through.
Is a blanket lien the same as a UCC lien?
A blanket lien is one kind of UCC lien. The difference is what it covers: all of the business's assets, instead of one named piece of equipment.
How do I find out if I have one?
Search your Secretary of State's UCC records and read the collateral description on each filing. If you took a cash advance or a working capital loan, start there.