Put simply, a debenture is a charge registered against the assets of a limited company, on behalf of any party owed money by the company.
In the UK, a debenture is the name typically given to a security agreement that sets out the terms under which the borrower provides security to a lender.
After a loan amount has been agreed between both parties, often with a fixed interest rate, the lender often looks to take security over some or all of the borrower’s assets. This is done in case the latter is unable to repay, for example, if the company goes into administration.
Debentures are easy to put in place. They have to be registered at Companies House and take just a few days.
Different debentures can either relate to different assets or cover the same ones.
If your business does have a debenture in place, don’t worry. We work with a lot of businesses who have debentures in place already.
A debenture with us means:
- A minimum 10% increase in your advance limit
- Less verification required, resulting in quicker access to funds
It’s quick and easy to access funds, which means you can get the cash flow you need to get on with business. With MarketFinance, you get:
- Fast funding: quick funding decisions and set-up
- Hassle free experience: easy to use digital interface
- Help in real-time: personal customer support
- Straightforward costs: no hidden fees