# Debentures explained: what they are and what they mean.

A debenture is a legal document that creates a charge over a company's assets in favour of a lender — a form of security that gives the lender rights over those assets if the company cannot repay. Credicorp does not take a debenture. No charge of any kind is taken over the company's assets, a director's home, or any personal property. On every Credicorp product, **the company borrows, never you personally**. No personal guarantee.

Creditcorp is the growing name for the Credicorp group, and Credicorp Limited is the lender behind it. It does one thing: short-term working capital for incorporated UK businesses. This page is a guide, not an application; applying happens on the lender's own site, [credicorp.co.uk](https://credicorp.co.uk/).

## What is a debenture?

In UK commercial lending, a debenture is a legal instrument that a company grants to a lender as security. It registers the lender as a secured creditor at Companies House — the public record that anyone can search. Once registered, it gives the lender specific rights over the company's assets if the company defaults.

A debenture typically covers the company's assets collectively — property, equipment, receivables, intellectual property, stock. Some debentures cover specific assets only (a fixed charge on a named piece of equipment, for example); others cover the general pool of assets as a whole (a floating charge).

## Fixed charge vs floating charge

A debenture often contains both types.

**Fixed charge** — attaches to a specific, identifiable asset. The company cannot sell or dispose of that asset without the lender's consent. Common on property, plant and equipment.

**Floating charge** — attaches to a class of assets that changes over time, such as stock or trade debtors. It "floats" over the pool until a trigger event (such as default), at which point it crystallises into a fixed charge over whatever assets are in the pool at that moment.

## Does Credicorp take a debenture?

No. Credicorp does not register a charge at Companies House against any borrower company. No fixed charge, no floating charge, no debenture of any kind.

This is an intentional part of Credicorp's product design. The lender assesses affordability and trading history, not asset security. The absence of a charge means:

- The company's assets are not encumbered by a Credicorp facility
- Future lenders and suppliers can see that there is no Credicorp charge on the company's register
- The company retains full freedom to deal with its own assets

## The negative pledge — what it restricts

Although Credicorp does not take a charge, the Business Loan Agreement contains a negative pledge. This is a contractual undertaking — not a registered security — in which the company agrees not to grant a charge to a third party that would rank ahead of Credicorp's unsecured position without Credicorp's consent.

A negative pledge is not registered at Companies House and is not publicly visible. It is a contractual restriction, not a real right against assets. Its practical effect is that the company should not go to another lender and grant a debenture during the term of a Credicorp facility without first checking the agreement.

## How to check the company's charges register

Any registered charge on a UK company is visible at Companies House. To check the company's charges register:

1. Go to the [Companies House search](https://find-and-update.company-information.service.gov.uk/)
2. Search for the company by name or registration number
3. Select "Filing history" and look for form MR01 (mortgage/charge registration) or form MR04 (satisfaction of charge)
4. Under "Officers" or "Charges" (depending on the Companies House website version), look for the list of outstanding charges

A company with a Credicorp facility will show no MR01 from Credicorp, because no debenture is taken.

## Debenture questions

**Will borrowing from Credicorp appear as a charge on Companies House?** No. Credicorp does not register a charge. There will be no entry on the company's charges register as a result of a Credicorp facility.

**If Credicorp takes no charge, what happens if the company defaults?** Credicorp is an unsecured creditor. In insolvency, it ranks behind secured creditors and preferential creditors (e.g. HMRC, employee claims) but ahead of shareholders. It has no special rights over any specific asset.

**Can the company grant a charge to another lender while it has a Credicorp facility?** The negative pledge in the agreement requires the company not to grant a prior-ranking charge without Credicorp's consent. Granting a charge in breach of this term would be a default event.

**Does the director's personal property ever become security?** No. There is no personal guarantee, no charge over a director's home, and no personal security of any kind on a Credicorp product.

**What is a debenture holder?** A debenture holder is the lender in whose favour the charge is registered. Because Credicorp takes no debenture, it is not a debenture holder in any Credicorp borrower company.

## Related guides
- [No personal guarantee — what it means](/learn/no-personal-guarantee-what-it-means/) — why the company is the only obligor.
- [What a business loan agreement covers](/learn/what-a-business-loan-agreement-covers/) — the terms you sign when you borrow.
- [Lending and regulation](/lending-and-regulation/) — the legal basis for Credicorp's exempt business lending.
- [The three products](/products/) — Business Bridging Loan, Credicorp Flex and Credicorp Slice.

## Borrow without putting the company on the line personally

No personal guarantee. No charge over your home. The company borrows, you direct. Apply at [credicorp.co.uk](https://credicorp.co.uk/).