A debenture is a type of loan registered with Companies House. In a debenture, the lender will secure the loan against the borrowers’ assets.

Organisations such as banks use debentures when providing business loans.

Only a limited company or limited liability partnership can avail of debentures.

You would have had to sign the debenture for it to be registered. You can visit the Companies House website to find any debentures charged on your company.

Yes. On the Companies House website, the debentures will be listed in chronological order (unless one lender has been given a deed of priority). Sometimes, debentures that have been paid off will be listed – you can ask the lender to remove them.

Most likely, yes. It’s always best to check with the lender.

Always get legal advice before signing a personal guarantee.

An agreement not to give a debenture to someone else.

The lender can hire an administrator to take control of the company and remove and sell assets to generate funds to pay the debt.

Consent is usually needed to sell assets subject to a fixed charge. If the sale of floating charge assets is out of the normal course of trade, lender consent would be needed.

It is best to check the terms of the charge/debenture for what consent is needed from the lender.

If the debt exceeds a certain amount, your bank may ask you to appoint someone from their approved list. Otherwise, you can appoint someone yourself.