After-Acquired Clause

If your business gets a loan, the loan contract might include an after-acquired clause. This clause specifies that assets you acquire in the future would count if you ever default on the loan and your bank has to start claiming your stuff to pay off the debt.

The provision protects the lender. Without the clause, you might spend all the borrowed money on pinball machines and truckloads of Cheetos (that's what we'd spend it on). Then, when you couldn't pay the loan, you'd be like "sorry, brah...take everything I had before...I'll just be in the back snacking on Cheetos and slamming high scores on my Game of Thrones machine."

With an after-acquired clause, your bankers would just shake their collective bespectacled heads and send in a group of burly factotums to confiscate the pinball games, and probably most of the Cheetos as well.