Glossary

Debenture (as security)

A debenture is the document by which a company grants a lender security over its assets — usually a fixed charge on specific items and a floating charge over the rest.

2 min read

Security documentCharge over assets

Fixed + floatingSpecific plus general

Definition

In business lending, a debenture is a written instrument creating a charge over a company's assets in favour of a lender, commonly combining a fixed charge over named assets and a floating charge over the changing pool of stock and receivables. It's registered at Companies House.

In plain terms

It's the paperwork that lets a lender claim your assets if the loan isn't repaid — the formal backing behind secured company borrowing.

Why it matters for your company

Granting a debenture ranks that lender ahead of unsecured creditors and can limit further secured borrowing. Unsecured, no-personal-guarantee lending avoids tying up your assets — see secured vs unsecured.