Debenture

How debenture works

The precise assets, secured obligations, restrictions and enforcement rights depend on the document. Registrable charges generally require registration at Companies House within the applicable deadline. Existing charges and priority arrangements matter.

Practical UK business example

A company seeking a secured facility is asked to provide an all-assets debenture. Its solicitor reviews how the proposed security interacts with an existing lender’s charge.

Illustrative example only; not a finance quotation or a client case study.

Why it matters

A debenture can support a facility without identifying only one asset, but may limit disposals, further borrowing or use of company assets as security elsewhere.

Limitations and common misconceptions

It is not the same as a personal guarantee: company security and an individual’s promise are different obligations. Registration alone does not prove a charge’s value or its priority in every situation.

Discuss business borrowing to discuss how the structure relates to your business.