The word has subtly changed its meaning over the years and in the real estate business a Debenture is what a bank will require from you if it lends you money. This will be by means of a fixed or floating charge over all your company's assets. So if you are unable to repay them they can sell whatever is owned by the company to get repaid. Fair enough - they are entitled to get their money back.
A "Fixed Charge" over specified assets means the bank is first in line to get its money back by the sale of those specific assets in the event of a disaster
A "Floating Charge" is more general and covers anything the company may own in the future eg stock, debtors and so on. Once it crystallises, a Floating Charge becomes in effect a First Charge.
There is a good article on this here
Bob Cory
Modified on 11/09/2019 at 08:33:23 by ℗ Bob Cory