Financing Statement


DEFINITION of 'Financing Statement'

A written document outlining the financing agreement between the lender and the borrower. It pertains specifically to the collateral taken from the borrower. It is filed under the Uniform Commercial Code and its primary use is to lay claim on the property and inform other creditors of that claim.

BREAKING DOWN 'Financing Statement'

The financing statement must include the names and addresses of both involved parties, include a signature of the borrower and include the details of the collateral.

  1. Creditor

    An entity (person or institution) that extends credit by giving ...
  2. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  3. Secured Debt

    Debt backed or secured by collateral to reduce the risk associated ...
  4. Net Borrower

    An entity that borrows more than it saves or lends out. A net ...
  5. Debtor

    A company or individual who owes money. If the debt is in the ...
  6. Financing

    The act of providing funds for business activities, making purchases ...
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