Glossary · People and paperwork
Lien Waivers
In short
Documents signed by contractors, subcontractors, and suppliers, waiving their right to place a lien on a property. They confirm payment has been received for services or materials.
What it means in a deal
While more common in construction, lien waivers might be relevant in an acquisition if significant leasehold improvements or equipment installations are part of the deal. Your lender will want assurance that no new liens can be placed on collateral due to unpaid work by the seller.
Related terms
Common questions about Lien Waivers
- 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?
- Is a UCC-1 filing sufficient to perfect a lien on business assets?
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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