Taking security and/or guarantees means that we can offer more competitive rates to our borrowers. Security and guarantees help us to recover funds owed in the event of a default.

Our expert business development and credit teams will work with you to put together a security structure that protects our lenders and still gives you the freedom to continue growing your business. Most GrowthLines are secured by a debenture (i.e. a charge on all business assets). In some cases, we might ask the directors of your business to provide personal guarantees alongside or instead of a debenture.

Below are the typical types of security used by Growth Street:

Debenture/all-assets charge

The debenture creates a fixed and floating charge over all of a borrower’s business assets. It contains, among other things:

  • Statements of fact (representations) regarding the business.
  • Promises (obligations) regarding business assets, for example, a promise not to grant security over the assets to third parties without Growth Street’s consent.
  • Obligations regarding the maintenance and protection of business assets, such as machinery and intellectual property. 
  • Our rights to enforce the security in an event of default or insolvency scenario. 

Fixed charge over book debts

A fixed charge over book debts is security over the money to a borrower from their own customers. The fixed charge contains, among other things: 

  • Statements of fact (representations) regarding the invoice(s). 
  • Promises (obligations) regarding the invoice(s), for example, not to allow your customer (the debtor) to make payment on terms not authorised by Growth Street. 
  • Obligations regarding the invoice(s), for example, not to allow debtors to pay you outside of the borrower's Growth Street account. 
  • Our rights to enforce the security in an event of default or insolvency scenario.

Personal guarantee

A personal guarantee is a promise by one or more director(s) of a borrower to pay debts owed if the business cannot (or does not) pay itself. Personal guarantees may be taken alongside a debenture or a fixed charge over book debts.

Cross-company guarantee

A cross-company guarantee is similar to a personal guarantee, but it is given by a company. This will usually be another company in the borrower’s group, often their holding company.

What if another lender has taken a security in my business?

It’s always easiest for us to provide credit where a borrower has not already given security to another lender. That being said, we can and do work alongside other lenders in appropriate cases, so please reach out to our team on 0808 123 1231 or contact@growthstreet.co.uk to discuss your specific case.

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