Yes, you can often get business funding with a UCC lien already on file, but it depends on the type of lien and how the new lender views it. A single UCC filing tied to one piece of equipment usually causes no problem. A blanket lien covering all your business assets is the one that can block a new funder from taking a position, and that is where your options matter most. A broker's job is to match your specific situation to the lenders whose guidelines you meet.
What is a UCC lien, and what is a blanket lien?
A UCC lien is a public notice a lender files under the Uniform Commercial Code to claim a legal interest in specific business assets it financed, such as a truck, a machine, or receivables. It is normal, it is how secured lending works, and having one on file does not mean you are in trouble.
A blanket lien is broader: instead of naming one asset, it claims a security interest in all of your business's present and future assets. Blanket liens are common with SBA loans, bank lines, and some cash-advance funders. Because a blanket lien covers everything, it is the type most likely to affect whether a new funder will lend to you.
How does a UCC lien affect getting new funding?
A new lender wants to know where it would stand if the business could not repay. The first party to file a UCC lien generally has the first claim on those assets, which is called first position. A blanket lien in first position can leave a new funder unwilling to lend, because there is nothing left for it to secure.
This is why two businesses with identical revenue can get different answers: one has a single equipment lien that leaves plenty of room, and the other has a blanket lien that ties up everything. The lien itself is not a rejection, but it changes which lenders can say yes and how they structure the offer.
What are your options when a lien is in the way?
You usually have three practical paths, and the right one depends on your numbers and your existing agreement.
- Subordination - your existing lienholder signs an agreement letting the new lender step into a higher position for a specific facility. Some banks and SBA lenders will do this; others will not.
- Pay off or refinance the lien - clearing the balance releases the lien, which can free you to qualify for stronger, cleaner offers.
- Find a lender who works around it - some funders will lend behind an existing lien or against assets the current lien does not cover.
No broker can promise a specific outcome, because that decision belongs to the lender. What a broker can do is know in advance which funders are comfortable with liens like yours, so you are not applying blindly and collecting rejections.
How does a broker help a business that has a lien?
The Broker Shop is a funding brokerage, not a lender. You complete one 2-minute application, and we match you to the lenders whose guidelines you meet for your exact situation, including an existing UCC or blanket lien. That saves you from guessing which funders even consider your file.
If credit is also part of the picture, that is workable too. Our guide on business funding with bad credit explains how funders weigh credit alongside revenue. And if you want to compare products, a merchant cash advance is one option that some funders will place behind an existing lien. Checking your options is free, and it won't affect your credit score.
See what you qualify for
One 2-minute application is matched to the lenders whose guidelines you meet. It's free, and checking your options won't affect your credit score.
See What I Qualify For →The bottom line: A UCC lien rarely ends the conversation on its own, but a blanket lien changes who can fund you, so match your situation to the right lenders instead of applying blindly. See what you qualify for.