What is a financing statement? What is its significance in perfecting a security interest?

What will be an ideal response?

A financing statement is a document filed by a secured creditor with the appropriate government office that constructively notifies the world of his or her security interest in personal property. Often, a creditor's physical possession of collateral is impractical because it would deprive the debtor of use of the collateral (e.g., farm equipment, industrial machinery, consumer goods). At other times, it is simply impossible (e.g., accounts receivable). Filing a financing statement in the appropriate government office is the most common method of perfecting a creditor's security interest in such collateral. This is called perfection by filing a financing statement.