Glossary · The loan itself
Lien on Accounts Receivable
In short
This is a legal claim a lender places on the money owed to the business by its customers. It serves as collateral for your loan, giving the lender rights to these assets if you default.
What it means in a deal
For many SBA 7(a) loans, lenders will take a first lien position on all business assets, including accounts receivable. This means if the business defaults, the lender can collect directly from your customers' outstanding payments. It's a standard collateral requirement you should expect.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Lien on Accounts Receivable
- Does the SBA require a blanket lien on all business assets, including accounts receivable and inventory?
- How does the SBA require lenders to perfect security interests on accounts receivable and inventory?
- Can my business's accounts receivable be used as collateral?
- How does the SBA 7(a) loan program value and take collateral on accounts receivable from government contracts?
- What if the business being acquired has significant outstanding Accounts Receivable (AR)?
- Can accounts receivable from the acquired business always serve as sufficient collateral?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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