Already have a facility and security in place? A second one is a different question to the first.
A business with an existing debenture or asset-backed facility isn't shut out of further borrowing, but a second facility isn't assessed the same way as a first one. What's already pledged, what consent an existing lender has to give, and how a new lender's claim would rank all matter before the new request's own numbers do.
What actually changes with security already in place
The unsecured route, when it fits
Not every second facility needs to touch the existing security at all. A facility sized on trading performance, bank conduct and cash flow rather than a specific asset can sometimes sit alongside an existing debenture without needing its consent, worth exploring before assuming the existing charge is a blocker.
FAQs
Does an existing debenture stop me getting a second facility?
Not automatically. It means your existing lender has to consent, or the new facility needs to rank behind it, and whether that's workable depends on what's actually in the existing agreement, not just that a debenture exists.
Why does a new lender need to see the existing facility documentation?
Because it changes what security is actually available and in what order claims rank if things went wrong. A lender assessing a second facility needs to know what's already pledged before it can work out what it can genuinely secure against.
What if the existing facility has plenty of headroom left?
Headroom on paper and headroom a new lender will recognise aren't always the same thing, it depends on the specific covenant and how close recent trading has run to it. Worth checking directly rather than assuming.
What should I have ready before asking?
A copy of the existing facility and security documentation, or at least a clear summary of what's pledged and to whom. Going into the conversation without it usually means a round trip while the new lender chases the information itself.
Tell us what's already in place and what you need next: eligibility checker. Limited companies, LLPs and partnerships of 4+ only.