What Is a Debenture Release and How Long Does It Take?
When you switch or exit an invoice finance facility, the old provider must remove (release) the debenture they registered over your book debts at Companies House. Release should take 5-10 working days but some providers stall deliberately. Insist on a firm release date in writing when you serve notice.
What this means for your business
When a UK business takes out an invoice finance facility, the lender typically registers a debenture at Companies House. This legal charge gives the lender a claim over your book debts and sometimes broader business assets as security. When you decide to switch to a new provider or exit the facility entirely, that debenture must be formally removed, a process known as a debenture release. Until the release is completed and filed at Companies House, a new lender may be unwilling to offer you a facility, because the existing charge takes priority over theirs. For an SME looking to move quickly to a better deal, any delay in obtaining this release can hold up funding and disrupt cash flow. Understanding the process in advance helps you plan your exit and avoid unnecessary gaps in finance.
Key points
- A debenture is registered at Companies House and is publicly visible, meaning any prospective lender will see it when conducting due diligence on your business.
- The outgoing invoice finance provider is responsible for filing the release with Companies House once your obligations to them have been settled.
- Release should typically take between five and ten working days, though the timeline can vary depending on how promptly the outgoing provider acts.
- You should request a firm written commitment on the release date at the same time as you serve your notice to exit the facility.
- Until the debenture is formally released and updated at Companies House, your new facility cannot usually be secured against the same book debts.
Common pitfalls
One of the most common mistakes is failing to request a written release date when serving notice, which leaves you with no formal commitment to hold the outgoing provider to. Some providers may delay the process, particularly if they wish to retain your business or if there are disputes over final settlements. Businesses sometimes underestimate how long the transition takes and give notice too late, creating a gap in funding. Always confirm that the release has actually been filed at Companies House rather than simply taking the provider's word for it, as administrative errors can occur.
Related questions
Can I set up a new invoice finance facility before my debenture is released?
In most cases, a new lender will not complete their facility until the existing debenture is released or a deed of priority is agreed between the two parties. Some lenders will begin onboarding work in parallel, but funding is unlikely to start until the charge is cleared. Speaking to your new provider early about their requirements can help you manage the timing.
What happens if my outgoing provider refuses to release the debenture promptly?
If a provider unreasonably delays releasing a debenture after all outstanding balances have been settled, you may have grounds to escalate the matter formally, including making a complaint or seeking legal advice. The Financial Ombudsman Service may be relevant if the provider is FCA regulated. Putting all communications in writing from the outset gives you a clear paper trail if a dispute arises.
Is a debenture release the same as closing my invoice finance account?
Not exactly. Closing your account means ending the commercial relationship and settling any outstanding balances or fees, whereas the debenture release is a separate legal step that removes the registered charge at Companies House. Both need to happen for you to be fully free of the outgoing provider. It is possible for an account to be closed operationally while the debenture filing still shows as active at Companies House until the release is processed.
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 4 May 2026