Financing Statement

A Financing Statement is a legal document used primarily in secured transactions to notify creditors about a borrower's debt or loan. It is filed with a government office, often a Secretary of State, and provides public notice of a lender's interest in a borrower's collateral, such as property or assets. This helps establish the priority of claims if the borrower defaults on the loan. Essentially, it serves as a record to ensure that lenders have a claim to specific assets in case of financial trouble, protecting their rights and investments.