Glossary · Doing the deal
No-lien affidavit(Affidavit of No Lien)
In short
This is a sworn statement confirming that no one has a lien or claim against a specific asset or property. Buyers use this to ensure they're acquiring assets free and clear.
What it means in a deal
During closing, your lender will require the seller to sign this affidavit, especially for real estate or significant equipment. It's a critical document for your title company and lender to confirm that there are no hidden encumbrances that could jeopardize your collateral. Verify all lien searches.
Related terms
Common questions about No-lien affidavit
- 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?
- What if my business is new and has no financial history?
- What if the business I am buying has no traditional collateral?
- Can I acquire a business that operates primarily online with no physical storefront?
- What happens if my business grows and no longer meets SBA size standards?
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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