2 min read
Definition
A secured charge gives a lender a legal claim over a specific company asset — property, equipment or, via a debenture, company assets generally — as security for a loan. If the company defaults, the lender can recover the debt from the charged asset.
Why it matters
A charge over company assets is different from a personal guarantee, which risks your personal assets. Unsecured, no-PG borrowing avoids both. See secured vs unsecured.
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Loan-to-value (LTV)
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