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. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  2. Creditor

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

    A company or individual who owes money. If the debt is in the ...
  4. Secured Debt

    Debt backed or secured by collateral to reduce the risk associated ...
  5. Financing

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

    An entity that borrows more than it saves or lends out. A net ...
Related Articles
  1. Promissory Notes: Not Your Average IOU
    Personal Finance

    Promissory Notes: Not Your Average IOU

  2. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

  3. Your Financial Life: From Stressful ...
    Insurance

    Your Financial Life: From Stressful ...

  4. What does it mean when advertisers say ...
    Options & Futures

    What does it mean when advertisers say ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center