What is a Blanket Lien?

A security interest that covers multiple assets of a borrower rather than a single item.

For example, a working capital lender registers a blanket lien over all of a retail company's assets — including inventory, equipment, and receivables — ensuring the lender has a claim on all of the business's property if it defaults.

Why it matters: It gives lenders maximum security but restricts the borrower’s ability to use their assets as collateral for other financing.