How do I remove a satisfied charge at Companies House?

You file form MR04, a statement of satisfaction, at Companies House. The charge then shows as satisfied on the company’s public record, so a lender, a buyer or a supplier reading the register can see the debt behind it has been repaid.

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Why a repaid loan still shows on the register

When a company gives security for a loan, the charge is registered at Companies House. The Companies Act 2006 allows 21 days, beginning with the day after the charge is created, to deliver it for registration (section 859A). Either the company or the lender can deliver it. A charge that is not registered in time is void against a liquidator, an administrator and the company’s creditors (section 859H), so a lender has every reason to register.

Repaying the loan changes nothing on the register. The entry stays as it is until someone delivers a statement that the debt has been paid or that the property has been released from the charge (section 859L). Until then the charge shows as outstanding, years after the last repayment.

An outstanding charge matters when you next borrow. A lender reading the register sees another secured creditor with a claim on the same assets. An asset finance provider wants the equipment clear of any other charge. A buyer’s solicitors raise it in due diligence on a sale. A supplier deciding how much credit to give may read the same entry.

Filing form MR04

  1. 1

    Find the charge

    Search for the company on the Companies House service and open its charges. Each one shows the date it was created, the lender and its status, and a charge created from 6 April 2013 has its own charge code.

  2. 2

    Get confirmation from the lender

    Ask for a letter confirming the debt is repaid and the security released, or a deed of release. Keep it with the company’s records.

  3. 3

    Complete the form

    Use Part A for a charge created before 6 April 2013 and Part B for one created on or after that date. State whether the debt is satisfied in full or in part.

  4. 4

    File it

    File online through WebFiling or on paper. The statement gives the name and address of the person delivering it and their interest in the charge.

Form MR04 on gov.uk.

Figures worked out on paper beside a laptop

Who files it

The Act does not limit who can deliver the statement. It requires the name and address of the person delivering it and an indication of their interest in the charge. The company can file it itself or ask its accountant or solicitor to do so, and some lenders file it when a loan is repaid. If the charge still shows as outstanding after you have repaid, file it yourself.

File only what is true. The statement is a statement of fact about the debt, and delivering a misleading, false or deceptive statement to the registrar without reasonable excuse is an offence under section 1112 of the Companies Act 2006. Hold the lender’s letter before you file.

Part payment and released property

MR04 also records part payment. If a loan has been paid down but not cleared, you can state that the debt is satisfied in part. A new lender will still see an outstanding charge, with the part satisfaction recorded against it.

Where the debt is still owed and an asset has been released from the charge, for example when the company sells a property with the lender’s consent, section 859L allows a statement that the property has been released from the charge or no longer belongs to the company. The statement must describe the part of the property it covers.

Check what the charge secures before you file. An all monies debenture secures every debt the company owes that lender. Repaying one loan does not end it if the company still has an overdraft, a card facility or another loan with the same bank. Ask the lender to confirm in writing that no liability remains. A satisfied charge stays on the register with its status changed, which shows a later lender that the company borrowed on security and repaid.

A charge and a personal guarantee are separate

Filing MR04 records that the company’s security has been released. It does nothing to a personal guarantee a director signed for the same loan, which is a separate contract and does not appear on the register. Ask the lender for a written release of the guarantee as well. Read what a personal guarantee means for a director.

Questions people ask

Who is responsible for filing MR04?

The Companies Act 2006 does not name one person. The company, its accountant or solicitor, or the lender can deliver the statement, giving their name, address and interest in the charge. Lenders do not always file it when a loan is repaid, so check the register after your last payment and file it yourself if the charge still shows as outstanding.

Can I remove a charge if the lender no longer exists?

The Act does not require the lender to file or sign the statement, so the company can file MR04 on the evidence it holds that the debt was repaid. Where the lender merged or was taken over, ask the business that took over its loans for a letter confirming repayment. If you cannot show the debt was repaid, take advice from a solicitor before filing, because the statement must be true.

Does an old charge stop me borrowing?

It can. A lender reading the register sees another creditor with security over the same assets, and an asset finance provider wants the equipment clear of other charges. The lender may ask for proof the old debt is repaid, or for a deed of priority with the old lender, before it lends. Filing MR04 for a repaid loan removes the question.

What is the difference between a charge and a debenture?

A charge is security over an asset for a debt. A debenture is the document a lender uses to take charges over a company’s assets, usually a fixed charge over named assets and a floating charge over the rest. Each charge it creates is registered at Companies House. What a debenture is.

Does a charge on the register mean a director signed a personal guarantee?

No. A charge is security over the company’s assets. A personal guarantee is a separate contract between a director and the lender, and it does not appear on the Companies House register. A lender can take both for the same loan, so ask the lender about each one when you repay.

What is a debenture?

A debenture is a legal document that gives a lender security over a company’s assets, through fixed charges over named assets and a floating charge over the rest. It must be registered at Companies House, and it decides where the lender stands if the company becomes insolvent. The full answer.

What do lenders look at for a business loan?

A lender reads the company's bank statements and works out whether its cash covers every loan repayment with room to spare. It then checks the trading history, the Companies House record, the credit files of the company and its directors, and what the money is for. The full answer.

Refinancing business debt

Refinancing replaces existing business debt with a new loan, at a lower rate, over a longer term or as one payment in place of several. A longer term cuts the monthly cost but can raise the total you repay, and early repayment charges on the old debt add to the bill. When the old debt is cleared, get its personal guarantees and charges formally released. The full answer.

Should I take a secured or unsecured business loan?

A secured loan gives the lender a charge over an asset, such as property, equipment or everything the company owns, and that security can support a larger loan over a longer term. An unsecured loan has no charge over a named asset, and a lender can still ask a director for a personal guarantee. The full answer.

Finance is subject to status and to the lender’s terms. A personal guarantee makes you liable for the company’s debt if it does not repay, and it can be enforced against your own assets, including your home. Nothing here is a personal recommendation.

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Funding searches run on Swoop’s platform. Swoop Finance Limited is a credit broker and not a lender, and is authorised and regulated by the Financial Conduct Authority (FRN 936513). Buzz Accounting Ltd introduces businesses to Swoop and may receive a fee from Swoop when funding is arranged. Business funding is separate from the financial advice Equity & General Financial Services Limited gives through this website. Finance is subject to status, and a lender may ask a director for a personal guarantee.

Cover for a personal guarantee

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