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Postby kachibibi » Sun Sep 21, 2014 3:30 pm

If sole traders, partnership partners and companies want to borrow loans, are these loans all called "debentures"? It seems to me that "debentures" are only applicable to companies because they should be a kind of certificate which is issued to attract outsiders to grant them loans.

If this is the case, that means there are methods other than debentures to obtain loans for all the above 3 types of business? If yes, what are their names? Plus, can they be secured i.e. through the creditor's taking a charge, fixed/floating, like debentures?
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Re: Debenture

Postby atticus » Sun Sep 21, 2014 4:29 pm

No. A loan is a loan.

A debenture is a type of security a company can give, often taking the form of a charge over all its assets, including trading stock, money owed to it etc.
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Re: Debenture

Postby dls » Sun Sep 21, 2014 8:37 pm

The reason many businesses incorporate is exactly because there becomes available the ability to charge assets such as book debts and goodwill which abilities are not available to non corporate businesses.
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