When a company borrows money from a bank it is generally a
condition of that loan that the bank is given some security over
the company’s assets to guarantee payment. That security is
often called a charge. Charges must be registered with the
Registrar of Companies in order to be valid.
The document evidencing the loan from the bank to the company
is often called a debenture. This document will contain details of
the charge which the company has given the bank.
As well as banks, other persons sometimes make loans to
companies and are given charges, for example finance companies or
venture capitalists
