Company Charges: What the Register Shows and What It Does Not

When you look at a company's public record, you may see an entry for a "charge". It is easy to skim past, yet it can tell you something about how a company has secured its borrowing. This article explains the basics using GOV.UK guidance on registering a charge. It is general information only. Audit1 is not a statutory audit, a regulated assurance engagement or a substitute for professional verification.

What is a charge?

GOV.UK describes a charge as "the security a company gives for a loan". A mortgage is one type of charge. In plain terms, a lender may take a charge over company property or assets as security for money lent.

What does the public record show?

According to GOV.UK, information sent to Companies House is published on the company's record, including any certified copy of the charge document. Personal details such as an individual's information or a signature can be removed from that copy beforehand.

The 21-day rule

GOV.UK says that if a charge is not registered within 21 days, it may be difficult to recover the debt if the company becomes insolvent. The period starts the day after the charge is created. Only a court can extend it, so a late charge would need a court order to be registered.

Who can register a charge?

Any person "interested in the charge" can register it. That can be the company, an agent or the lender. GOV.UK gives the fee as £14 for online registration and £24 on paper.

How to read a charges entry sensibly

• Note the date you looked, because the register can change.
• Record what the entry says rather than what you assume it means.
• Remember that a charge is a fact about security, not a verdict on the health of a business.
• Use the entry as a prompt for questions, not as an answer.

What a charges entry cannot tell you

A public record entry does not tell you how much is owed today, whether the loan is performing, or whether other arrangements exist. For decisions that matter, take advice from a qualified professional.

Public records are a starting point. They are information only and are not verification.