Taking security over receivables

Copyright © 2025 LexisNexis

Published by a LexisNexis Banking & Finance expert

Practice notes

Taking security over receivables

Copyright © 2025 LexisNexis

Published by a LexisNexis Banking & Finance expert

Practice notes

imgtext

In commercial Lending transactions Receivables are typically offered as security:

•
as part of a package of security over the whole of a company's assets (see Practice Note: Key features of debentures), and
•
in transactions where a steady stream of receivables forms a major part of the Borrower's assets and the lender wants to control that income stream (for example, where the borrower is a company which provides goods and services to third parties)

This Practice Note explains the key issues which arise when taking security over receivables.

For information on taking security over other types of intangible assets see Practice Notes:

•
Taking security over insurance policies, and
•
Taking security over intellectual property rights

This Practice Note focuses on receivables, but more general information on taking security over contractual rights can be found in Practice Note: Taking security over contractual rights.

For specific information on receivables financings, see Practice Note: Invoice discounting and factoring.

Nature of receivables

In broad terms, a receivable is the right to receive the payment of money which

Powered by Lexis+^®

Jurisdiction(s):

United Kingdom

Key definition:

Receivables definition

What does Receivables mean?

A monetary obligation owed by one person to another in payment for the supply of goods or services.

Popular documents

Amending security documents

Amending security documentsReasons for amending security documents and key risksReasons for amending a security documentThere are situations where parties may consider amending security documents. Common examples include:•the parties want to make changes to the obligations being secured•the chargee

Taking security over insurance policies

Taking security over insurance policiesRights under insurance policies are a type of contractual right.Lenders can take security over insurance policies by an assignment by way of security. There are also additional protections that a lender can utilise in relation to insurances, such as having its

Taking security over receivables

Taking security over receivablesIn commercial lending transactions receivables are typically offered as security:•as part of a package of security over the whole of a company's assets (see Practice Note: Key features of debentures), and•in transactions where a steady stream of receivables forms a

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid