2 min read
Definition
A combined fixed and floating charge gives a lender a fixed charge over identified assets (like property or plant) and a floating charge over assets that change day to day (stock, receivables). Together they form an all-assets debenture.
In plain terms
The fixed part locks down big items; the floating part hovers over everything else and "crystallises" onto whatever is there if you default.
Why it matters for your company
An all-assets debenture is common security for larger facilities but limits your freedom to pledge assets elsewhere. Credit Corp’s core products avoid taking such wide security. See crystallisation.
Related reading
Fixed charge
A fixed charge is security a lender takes over a specific, identifiable business asset — such as property or…
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Floating charge
A floating charge is security a lender takes over a changing pool of business assets — such as stock, cash…
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Debenture
A debenture is a legal document that secures a loan against a company's assets, giving the lender a…
Read →Crystallisation (floating charge)
Crystallisation is the moment a floating charge stops hovering and clamps onto whatever assets exist —…
Read →Funding for UK limited companies
Credit Corp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.