Debentures

Bridging finance offers businesses quick, short-term funding solutions, often used to bridge a financial gap when time-sensitive opportunities arise, such as purchasing a property or expanding operations. While this type of finance can provide much-needed liquidity, it is essential to understand the various forms of security that lenders typically require to protect their interests. One common form of security is a debenture.

As a company seeking bridging finance, it is crucial to understand how debentures work, what they entail, and how they may affect your business. At Blackstone Solicitors, we provide expert legal advice on bridging finance and debentures, helping corporate borrowers across England and Wales make informed decisions and safeguard their interests.

Contact our secured lending and property finance solicitors today to find out more about how our specialists can help you and your company. Either call us on 0330 808 0839 or complete our online enquiry form and a member of the team will give you a call back.

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What is a Debenture?

A debenture is a legal document that provides security over a company’s assets in favour of a lender. In bridging finance, lenders often require a debenture to secure the loan and reduce their risk. Unlike a legal charge, which is secured against a specific asset (usually property), a debenture typically gives the lender a floating charge over a company’s entire assets or a mix of fixed and floating charges.

Fixed charge: This is attached to specific assets, such as property, equipment, or vehicles, meaning the company cannot sell or transfer those assets without the lender’s permission.
Floating charge: This applies to the company’s general assets, such as stock, cash, or receivables. These assets can continue to be used in the ordinary course of business, but if the company defaults, the floating charge ‘crystallises’ and the lender can seize and sell these assets to recover their funds.

A debenture provides lenders with considerable protection, allowing them to secure their loan against the company’s assets while giving the business the flexibility to continue trading.

How Debentures Work in Bridging Finance

When your company takes out a bridging loan, the lender may require a debenture as part of the security package. The debenture ensures that the lender has a claim on your company’s assets if the loan is not repaid as agreed. This gives the lender the right to recover the loan by selling the secured assets if your business defaults.

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Our Approach

We are 100% committed to ensuring each and every one of our clients receives the highest quality service and we will go the extra mile to ensure that you are happy with the results gained. We understand it can sometimes seem rather complicated to deal with matters relating to property finance this is why our friendly and approachable team always take a sympathetic and understanding approach, ensuring that you receive the support you need.

We believe communication is of the utmost importance. We will therefore keep you updated as things develop, and our solicitors will provide practical, straightforward legal advice so that you can be confident everything is progressing as you would like.

Debentures are a key feature of bridging finance, offering lenders security over a company’s assets in exchange for short-term funding. As a corporate borrower, understanding how debentures work and the risks involved is critical for making informed decisions and protecting your business.

At Blackstone Solicitors, we specialise in advising businesses across England and Wales on all aspects of bridging finance, including debentures. Our expert team can help you review and negotiate debenture agreements, ensuring that the terms are fair and that your company’s interests are fully protected.

If your company is considering bridging finance or needs advice on debentures, contact us today to discuss how we can assist you.

Why Legal Help is Important

Secured lending and property finance involve complex legal and financial arrangements that require expert advice. At Blackstone Solicitors, we work closely with businesses and individuals across England and Wales to ensure that every aspect of the transaction is handled with precision. We can assist in negotiating terms, ensuring regulatory compliance, and mitigating risks, all while keeping your business’s best interests at heart.

With our in-depth knowledge and experience, we ensure that you are fully protected throughout the lending process, from initial negotiations to final completion. If you’re looking to secure finance for a real estate project or are a lender, get in touch with our team today to discuss how we can assist you in achieving your business goals.

Our Services

The specialist solicitors at Blackstone provide a range of services to help businesses with their finances. These include, but are not limited to, the following:

Get in Touch

For more information about our services and how our secured lending and property finance solicitors can help you with any aspect of your financial dealings, do not hesitate to get in touch. You can call us on 0330 808 0839 or allow us to call you back by completing our online enquiry form.

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