Debentures

A Debenture is a document which:

• obliges a debtor to pay its creditor (covenant to pay); and
• grants security over the whole or substantially the whole of a company’s assets (usually by way of fixed and floating charge).

Our Debenture drafting service is designed to support you in obtaining security for a commercial loan.

The key advantage of requiring security from the borrower is that you will then rank ahead of the borrower’s unsecured creditors and certain other secured creditors, in the event of the borrower’s insolvency.

A Debenture will often include a mortgage over the property of the borrower, fixed charges over other specific assets, such as machinery, and a floating charge over those assets of the borrower that change over time, such as stock which is bought and sold in the ordinary course of business.

As every business is unique, we will draft the Debenture based on the terms of the loan and the particular assets of the borrower.

What does our service include?

• Telephone Consultation – to provide guidance and take detailed instructions.
• Debenture Deed – tailored to your specific requirements.
• Companies House & Land Registry filing – where applicable.
• Guidance – written in plain English.
• Updating Statutory Registers.

Depending on the type of assets over which charges are created by the Debenture, and the nature of the borrower, certain procedures will need to be undertaken to ensure that the security is enforcable, such as the filing of the Debenture at Companies House or registration at the Land Registry.

If you have already entered into a Debenture but would like some assistance with registering it at Companies House or the Land Registry, please refer to our Charges Registration Service.