The 'Crazy Chick' singer received the investment from Power Amp Music last March in a "groundbreaking" deal that promised her greater control and ownership over her career.
However, sources claim that Church has since ended the arrangement after clashing with Power Amp bosses on a number of issues, including disagreements about how the seven-figure sum should be spent, and their reluctance to back her plans for a US tour.
The Mail On Sunday further reports that Church is obliged to compensate Power Amp for not providing them with an album, although the 25-year-old's management yesterday refused to confirm whether any payment has been made.
Church's latest LP Back To Scratch, which debuted at 23 in the UK album chart last October, was released through her own record company Dooby Records.
Despite the reports, a spokesperson for Church denied that the star had fallen out with Power Amp executives.
They said: "All I can really say, because of the confidentiality issues, is that it was in Charlotte's financial interests to do so before the agreement entered the second year of its term. This is typical for these type of deals, which are investment deals rather than record deals.
"I can also say that the decision to terminate the term early, which suited both parties, was made well before the commercial release of the album. The album hasn't been released in the US and we wouldn't tour there until it was. There was no disagreement with Power Amp over this issue."
A representative for Power Amp also confirmed the split, but refused to comment on whether the company would be seeking compensation from Church.
They said: "It didn't work out with Charlotte and that's fair enough. There was no falling out. It was a mutual decision. They decided to exit the deal."