Protection through a Private Debenture
We at Kingsland Business Recovery like to use our experience and expertise to change the business environment we work within and have therefore have been busy working closely with other professionals in developing a product and a service that helps business owners.
We appreciate that business owners at some stage of the business life cycle will make investments into the business to provide continued support in troubled times or fund the growth of the business. We frequently observe in Administrations or Liquidations that one of the largest Unsecured Creditors are the Directors and/or Shareholders in the form of their loan accounts who see their investment difficult to recover or no return at all.
We also observed that Secured Creditors those such as Banks who hold a debenture have their indebtedness substantially repaid if not in full. Therefore, we have developed a product and a service which ensures that any investment from the Directors and/or Shareholders is appropriately protected. One such method of protection is through a Private Debenture that provides the Directors and/or Shareholders with a fixed and floating charge over the Company’s assets.
A debenture is the traditional name given to a loan agreement where the borrower is a Company. Typically, a debenture will set out the terms of the loan: the amount borrowed, repayment terms, interest, charges securing the loan, provisions for protecting and insuring the property etc., and terms for enforcement if the company defaults and will be registered at Companies House.
The implementation of the document is a once-only scenario and can be used to protect all future loans made to the business. Suitable ranking needs to be agreed with any other external lenders and Kingsland Business Recovery can advise on this together with undertaking an annual review of the security position.
For a free informal chat please contact the team at Kingsland Business Recovery on 0800 955 3595.