What is a general security agreement and what does it give a lender over my corporation's assets?

A general security agreement, often called a GSA, is a single contract in which your corporation grants a lender a security interest over essentially all of its personal property — equipment, inventory, accounts receivable, and other intangibles — as collateral for a loan or credit facility. It's the standard document Ontario lenders use to secure business financing, and it's registered under the Personal Property Security Act to protect the lender's priority against other creditors.

What it gives the lender is the right to look to that collateral, not just your corporation's promise to repay, if the loan goes into default. Because a GSA typically covers "all present and after-acquired personal property," it automatically extends to new equipment, inventory, or receivables the corporation acquires later, not just what it owns when the agreement is signed. This broad reach is exactly why lenders favour a GSA over financing tied to one specific asset. Before signing one, it's worth understanding exactly what's swept into the collateral description and what remedies the lender can exercise on default, since a GSA can significantly limit your corporation's flexibility to grant security to other lenders afterward.