Leveraging the new Debentures & Charges Filter on DueDil

06 August 2018 Maria Valles MarinProduct

This new search filter will allow you to identify companies with satisfied or outstanding debentures and charges. Customers will have the ability to refine them by specific dates and specific lenders.

What is a debenture?

In the UK a debenture is one of the most common forms of security taken by lenders. It is a charge registered against the assets of a limited company.

It allows a lender to collect money owed from a company’s liquidated assets if that company becomes insolvent. Assets can be things such as vehicles, machinery and equipment. It can also refer to the book debt of a business.

When do lenders take debentures?

Some lenders take debentures as standard and others take debentures to increase credit limits. Lenders will assess each business on a case by case basis and ascertain how creditworthy the borrower is.

A debenture gives the lender extra security and may be necessary in some cases. For example, in more risky industries such as Construction, a debenture will be more common practice. All debentures in the UK will be registered against the Company at Companies House. Hence, the information is publicly available.

We at DueDil, have taken this information and added it in to our search filters. Hence, you will now be able to pull lists of companies within the platform along with their charge holders.

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Why is this useful and how can you leverage the new filter?

  • This is really useful for lenders or financial institutions to run competitor campaigns. It allows you to quickly identify the companies working with other lenders, who you may want to target with alternate forms of finance.

  • Identify businesses that are open to different finance options.

  • Highlight creditworthy businesses as they will have been through risk assessments/credit checks with other lenders in the past.

  • Segment your search by industry to see which industries currently have the most finance associated with them. This enables you to check the concentration of lending in particular sectors. Furthermore, sectors that are more open to finance may require more finance options.

Debentures and Charges Search Filters are now available to all DueDil customers. If you would like to learn more about how your business could use DueDil, please reach out to a member of our team.