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. Credicorp’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
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.