Debenture

A debenture is a legal charge or security that a lender places over a company’s assets to secure a loan or credit facility. It gives the lender rights to those assets if the company fails to meet its repayment obligations.

Debentures can cover specific assets (like machinery or vehicles) or take the form of a “fixed and floating charge” over all company assets — meaning the lender has priority over proceeds from those assets in the event of insolvency.

Example:

A bank provides a £250,000 facility to a company and registers a debenture at Companies House, securing its interest over the company’s stock, receivables, and equipment.

Used in:

Business loans, invoice finance, asset finance, and other secured lending arrangements.