Glossary

Crystallisation (floating charge)

Crystallisation is the moment a floating charge stops hovering and clamps onto whatever assets exist — triggered by default, insolvency or a formal notice.

2 min read

Floating → fixedOn a trigger

Freezes the assetsDefault/insolvency

Definition

Crystallisation converts a floating charge into a fixed one over the assets in the class at that instant. It is usually triggered by an event of default, appointment of a receiver, or insolvency.

In plain terms

Until it crystallises, you can trade your stock freely. The moment it does, those assets are frozen as the lender’s security.

Why it matters for your company

Crystallisation ends your free use of the charged assets, so it typically signals a serious situation. Understanding the trigger points helps you act before they fire. See administration.