Distributors Get Lien On End Users If They Do Not Pay?

A member described the following:

"If we win a big job and need to purchase $70k of equipment then I just call our account rep with the distributor, give them the address of the job, and they set up a separate "project" account with new account number to be used for purchasing any equipment to be installed on that particular project and this doesn't affect the credit limit on our normal account. .... Basically by having the equipment for a given job site allocated in one account with the Owner's address then the distributor has all the documentation they need to secure a lien in the event of non-payment."

I am curious how this works, who and when this is offered.

It seems in this scenario the end user is not consenting to this lien and the lien is not even secured until a default in payment occurs. What is the legal / procedural aspects to this?

Any insights would be appreciated.

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