Debenture Loans
Companies that are able to provide their unencumbered assets as collateral can be financed in the form of debenture loans.
Companies with existing unencumbered assets (i.e. assets that are not subject to any claims by creditors) can leverage on these to raise working capital to meet their day-to-day operating needs. Examples of unencumbered assets include property whose mortgages have been paid off or fixed assets fully paid for.
At a Glance
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Allows companies to capitalise on unencumbered assets to raise additional working capital.
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Interest rates and tenure are subject to prevailing rates and risk assessment.