A debenture is a legal document that gives a lender security over a company's assets. It's common on secured facilities, larger loans and some Growth Guarantee Scheme facilities.
Fixed and floating charges
A debenture usually includes both:
- A fixed charge over specific assets, such as property, equipment or intellectual property. The company can't sell them without the lender's consent.
- A floating charge over assets that change day to day, such as stock and debtors. The company can keep trading with them normally, unless the lender enforces its security.
What it means for your business
- The lender ranks ahead of unsecured creditors if the business can't repay.
- It's registered at Companies House, so other lenders and suppliers can see it.
- It can affect future borrowing: another lender may need the first lender's consent, or an agreement about who ranks first.
Debenture vs personal guarantee
A debenture secures the loan on the company's assets. A personal guarantee is a promise by a director personally. Some facilities use both. See Will I have to give a personal guarantee?.
Before you sign
Take legal advice, especially on what counts as a default and how the security can be enforced.
Last reviewed: 8 October 2026