Corporate Lien

A debt that a company owes. A negative mark to inform investors or buyers that the firm owes money to another company, individual, or government.

When a creditor is owed money, it may place a lien—or claim—to the firm’s assets due to the outstanding debt obligation. Liens are a smart thing to have, because these claims receive preferential status over other debt obligations if a firm goes bankrupt, and liquidates its assets to pay off outstanding debts.

And if you want to get weird with it, know that the financial industry has found a way to securitize liens. They can be packaged and sold to investors to raise capital.