Glossary · Doing the deal
Lien waiver
In short
A document signed by a party (like a contractor or supplier) relinquishing their right to place a lien on a property or asset. It ensures the buyer takes assets free of undisclosed claims.
What it means in a deal
In an asset purchase, especially if there's inventory or equipment involved, your lender may require lien waivers from the seller's major suppliers or creditors. This confirms that those parties won't later claim a right to the assets you're buying. It's a key step to ensure you acquire "clean title" to assets.
Related terms
Common questions about Lien waiver
- When is a debt service coverage ratio waiver or exception possible for an acquisition?
- When must a lender take a lien on specific equipment for collateral, beyond a blanket lien?
- Is a separate lien required on each piece of equipment if a blanket lien is already in place?
- Does the SBA take a lien on my personal home as collateral?
- Is a blanket lien on all business assets a standard SBA requirement?
- What is the SBA's general requirement for lien position on business 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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