Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
A debenture is a specific debt-instrument or bond which is unsecured with any specific collateral. Debentures do not possess any collateral support and they are dependent upon the reputation of the issuer or his/her creditworthiness. These are issued by several Governments and corporations for raising funds/capital.
Debentures are similar to bonds. In financial transactions, they represent a structure or method for borrowers to offer a security-based interest to a lender in actual property/real estate as well. This may mean a promise of payment or a charge over any property, in tandem with any floating charge that exists over future and current personal and real properties of borrowers. Debentures may grant either floating or fixed charges. The latter is usually taken against property or other assets of a tangible nature.
