In short
A lien is a registered legal claim a lender places on financed equipment. It secures the debt and is released once the loan is paid in full, clearing the asset's title.
The lien is what makes equipment financing 'secured.' It gives the lender a recorded interest in the asset until you've paid it off:
A lien protects the lender, but it also affects you: you generally can't sell the equipment free and clear until the lien is discharged. When buying used equipment, it's worth checking for existing liens (via a PPSA search) so you don't inherit someone else's debt. Once your own financing is paid off, confirm the lien is released.
Not free and clear — the lien must be discharged first, usually by paying off the balance. A buyer's lender will check for existing liens before funding.
It's released when the loan is paid in full. The lender discharges the registration, which clears the asset's title.
General information only. This page is educational and does not constitute financial, legal, or tax advice. All financing is subject to credit review and lender approval. Rates, terms, and eligibility vary by applicant, asset, and lender, and are not guaranteed. Any figures or examples are illustrative. Please speak with a qualified advisor about your specific situation.