Facility, within Credit Lines
I already have a debenture. Can I still borrow more?
A debenture from an existing lender doesn't automatically block further borrowing. What actually decides it is what's written into the agreement (whether it includes a negative pledge, and whether that lender will consent), not the fact that a debenture exists at all. It fits established businesses that already have secured finance and need more headroom.
Recognition
You already have finance, and it's not enough any more
Most finance content explains what a debenture is. Almost none of it answers the practical question an already-funded business actually has: does having one already mean a second facility is off the table?
Why it happens
A debenture is security, not a blanket ban
It means your existing lender holds security over the business's assets, and any new lender will want to know where they'd stand behind that. That's a real constraint to navigate, not an automatic block.
Where this fits
More headroom on top of existing security
Borrowing more with a debenture already in place isn't a separate product. It's usually a further facility arranged around the existing lender's security, which is why this sits within Credit Lines.
Specialist insight
What to actually check
- Does it include a negative pledge? A term that stops or limits new security ranking equal with or ahead of the existing lender's, unless that lender consents. It restricts further security, not borrowing as such. Some agreements also have a separate clause that restricts further borrowing. Not every debenture has a negative pledge, but many do.
- Will the existing lender give consent? If a negative pledge exists, this is the real gatekeeping step, not a formality to skip.
- Is there genuine headroom in the assets? A second lender taking a lower-priority claim needs enough asset value to make that claim meaningful.
Decision helper
What typically fits
Read the agreement itself, not just the Companies House filing. A registered debenture with no negative pledge and plenty of asset headroom is a very different situation from one with a tight negative pledge and thin cover, even though both look identical on the public register.
What this usually leads to
Usually a second facility structured behind the first (a subordinated or second-priority arrangement), or, less often, a negative-pledge waiver from the existing lender for a specific new facility. Which one depends entirely on what's in your agreement, not on a general rule. How lenders agree which of them is paid first, including deeds of priority, is covered in which charge gets paid first.
When it doesn't go to plan
Three ways this gets stuck
- The existing lender says no. Which clause the refusal rests on, what the lender is protecting, and the routes left: lender consent refused.
- The new lender's charge won't complete. Land Registry consent restrictions, a refused deed of priority, no headroom or a missed 21-day registration window: second charge blocked.
- A covenant on the existing facility has failed. What the lender can do, what a waiver costs and when refinancing is realistic: covenant breach.
Not sure this is the right facility?
Start from the mismatch, not the product
If the business is viable and the shortfall keeps recurring, the useful question is which stage of the cash cycle the money is trapped at, because that decides the facility. See facility mismatch.
Check it yourself first
Three questions decide most of whether a facility fits: is the gap recurring or one-off, are the invoices already raised or not yet, and is your security already pledged to an existing lender? Answer them before you ask anyone for anything.
- Facility eligibility checker: a few quick questions, not a form, that point to the facilities your situation suggests. Nothing is saved or sent.
- When an existing lender will not consent
- A second charge is blocked
Talk it through
Need another perspective?
You may already know which facility you think fits. The more valuable question is whether it's actually the right structure for what's happening in the business. We'll review the situation before suggesting possible routes. It costs nothing to have that conversation.
Thank you. It's with our team now.
We read your enquiry and come back to you with what we think the right next step is. No obligation at any point.
What happens next
- We read it. No need to know which facility you want first.
- If we can help, we may introduce you to a provider.
- No charge and no obligation at any point. You decide whether to go further.
Adam Parker
Founder of Muswell Rose Consulting Ltd, which trades as Established Finance · Managing Director of Penny, an invoice finance business, from July 2020 to November 2023, and working in mortgages, commercial finance and fintech lending since 2010 (career history; career record).
Last updated:
Practical questions
Before you get in touch
Can I get more finance if I already have a debenture?
It can be possible. A debenture doesn't block more borrowing by itself. Three things decide it: whether the agreement has a negative pledge (a term that stops or limits new security ranking equal with or ahead of the existing lender's), whether that lender will consent if it does, and whether there is enough asset value left for a second lender. The Companies House entry shows whether a charge contains a negative pledge, but only the agreement shows exactly what it allows. We are an introducer, not a lender: if we can help, we may introduce you to a provider, and no provider is bound to offer finance.
How long does it take?
It varies by facility, so there isn't one number that fits every case. Some drawdowns against an existing facility complete within a day or two; arranging something new from scratch usually takes longer. We'll give you a realistic timeline once we understand your situation.
What information do I need?
To start, just a description of what’s actually happening in the business. If it progresses, the provider will ask for the usual things: recent accounts, a sense of turnover and trading history, and details of the specific need.