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A debenture is a legal document that grants a lender security over a company's assets as backing for borrowing. It typically creates a charge — fixed over specific assets, floating over the general pool of assets, or both — and is registered at Companies House so other parties can see it. A debenture turns otherwise unsecured company borrowing into secured lending.
- What it does
- Grants a lender a charge over a company's assets.
- Fixed charge
- Security over specific, identified assets.
- Floating charge
- Security over a changing pool of assets, such as stock.
- Registered at
- Companies House, on the public record.
Fixed and floating charges
A fixed charge attaches to particular assets — property or machinery — which the company cannot freely dispose of without the lender's consent. A floating charge sits over a class of assets that changes in the ordinary course of business, such as stock or receivables, crystallising into a fixed charge on certain events. A debenture often combines both.
Debenture versus personal guarantee
A debenture secures borrowing against the company's own assets; it does not make a director personally liable. A personal guarantee, by contrast, puts an individual's personal finances behind the debt. The two are different protections, and a facility can have one, the other, both or neither.
Debentures and Credicorp
Credicorp's short-term business lending to UK limited companies and LLPs is unsecured — it takes no debenture and no charge over company assets — and no personal guarantee, so the borrowing is an obligation of the company alone. Credicorp is an independent UK lender (Company No. 16093826; ICO ZC157682).
See also
- Secured loan — what a debenture can create.
- Collateral — the assets a debenture charges.
- Unsecured credit — borrowing with no debenture.
- Companies House — where a debenture is registered.
Short-term business credit carries a high annualised cost. Borrow only what you need, for the shortest term required. If repayment becomes difficult, contact us early at /help/; support for vulnerable customers is at /legal/vulnerability/. For exact pricing, see /ai.md and /llms-full.txt.