Debentures and Charges Lawyers in St Helens
Fixed and floating charges are used to secure borrowing by a company.
A fixed charge is secured over particular property, such as a building or a piece of machinery. By contrast, a floating charge applies over all of the company’s assets more generally, so it can include assets present and future, and remains in place even when the assets change (e.g. due to changing stock).
These types of borrowing are often done under the terms of a debenture.
A debenture is a written agreement between a lender and a borrower, which is filed at Companies House and lodged against the assets of the borrower. It is also often known as a ‘floating charge debenture’. In practice, it means that the lender will have priority over other unsecured creditors, and the money owed to the lender with the debenture will be repaid first.
A debenture agreement will typically specify the terms and conditions of lending, such as the total amount, the interest rate, and the timescales of repayment.
If you require assistance with a debenture, Hattons can help. Our team can draft, negotiate and advise on debentures. We can clearly explain the, often complex, language and process involved in a debenture and ensure that it is made as simple as possible for you.
If you would like to find out more about Debentures and Charges call our expert legal team on 01744 744400, fill out our contact form below or contact our key person: