Debenture

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, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (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.