How Debenture Loans Can Help Growing Businesses with Cashflow Needs
Updated: Mar 30
As businesses grow, their cash flow needs can also increase rapidly. However, local banks may not always be able to provide the necessary financial assistance, leading businesses to seek alternative financing options. In such cases, debenture loans can be a viable solution.
Recently, we helped a local maintenance company secure a debenture loan for £1.8 million over a five-year term from a London-based company. The loan was approved quickly and secured against a debenture, allowing the company to move forward with new contracts.
Debenture loans are business loans that are secured against a company's assets, including but not limited to property, machinery, and stock. Unlike traditional loans secured against mortgages, debenture loans are not limited to a specific asset. This means that growing businesses can secure financing without needing to provide a mortgage.
In the case of the local maintenance company, a debenture loan provided the necessary cash flow to pursue new contracts and grow their business. The loan was secured against a debenture, which is essentially a legal agreement that the company would pay back the loan with interest.
For growing businesses in need of cash flow assistance, debenture loans can be a viable solution. With the ability to secure loans against assets beyond just mortgages, businesses can pursue financing that meets their unique needs. If you or someone you know could benefit from a debenture loan, get in touch with our team to discuss the options available.