Business terms and jargon explained. Your business dictionary

What is Floating Charge

This is when there is a choice of assets that a loan or debenture is secured against. E.g. A fleet of cars are used to secure a loan. In the event of default anyone of the cars can be chosen by the creditors to be sold to make the repayments.

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Term created / updated 2011-06-05 11:47:48

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