Intro to Finance
A lien is a legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied. This means that if the borrower fails to repay the loan, the lender can take possession of the property to recover their losses. Liens play a crucial role in securing debts and are particularly relevant in accounts receivable management as they provide a way for lenders to protect their interests when extending credit.
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