Financing Statement

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Secured Debt

    Debt backed or secured by collateral to reduce the risk associated ...
  2. Creditor

    An entity (person or institution) that extends credit by giving ...
  3. Net Borrower

    An entity that borrows more than it saves or lends out. A net ...
  4. Financing

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

    A company or individual who owes money. If the debt is in the ...
  6. Article 9

    An article under the Uniform Commercial Code (UCC) that governs ...
Related Articles
  1. Personal Finance

    Promissory Notes: Not Your Average IOU

    These may be a handy way to borrow money, but this convenience does not come without risk.
  2. Markets

    What Is A Cash Flow Statement?

    Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.
  3. Insurance

    Your Financial Life: From Stressful To Stress-Free

    Find out how to get the ball rolling on your future financial security. Then sit back and watch things unfold.
  4. Options & Futures

    What does it mean when advertisers say that "financing is available"? Should I trust them to give me ...

    When an advertisement says "financing", it means that the seller is going to give you a loan on an item that you purchase. Making use of seller financing means that you're buying on credit. You ...
  5. Investing

    What do people mean when they say debt is a relatively cheaper form of finance than equity?

    In this case, the "cost" being referred to is the measurable cost of obtaining capital. With debt, this is the interest expense a company pays on its debt. With equity, the cost of capital refers ...
  6. Markets

    Introduction To Fundamental Analysis

    Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
  7. Credit & Loans

    What is the difference between APR and APY?

    Learn about the difference between the calculations for APR and APY. APY takes into account the number of times that the interest rate is applied on an amount.
  8. Credit & Loans

    Are APRs different in different countries?

    Learn about the term APR and how it is used in the United States and other countries. Explore why different lenders charge different APRs.
  9. Credit & Loans

    What loans do and don't have an APR?

    Learn about what annual percentage rates (APR) are and what they mean. Explore different fixed and variable APRs charge by different lenders.
  10. Credit & Loans

    What is a bank's legal liability when issuing a letter of credit?

    Learn the responsibility of banks that issue letters of credit Letters of credits ensure payment on transactions between parties that have no relationship.

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center