2 min read
Two kinds of security
A fixed charge locks onto a named asset — you cannot sell it freely without the lender’s consent. A floating charge sits over a shifting pool such as stock or receivables, letting you trade until an event of default crystallises it into a fixed charge.
Why priority differs
On those specific assets, fixed-charge holders are paid before floating-charge holders and preferential creditors. This ranking is what makes security valuable to a lender — see how charges affect other lenders.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. Credicorp’s standard unsecured facility registers neither charge, leaving your assets unencumbered. See business loans or apply online.
Frequently asked questions
Which ranks higher, a fixed or floating charge?
On the specific assets it covers, a fixed charge ranks above a floating charge and preferential creditors, so its holder is paid first from those assets.
What is crystallisation?
It is when a floating charge converts to a fixed charge on the assets it covers, typically on an event of default, freezing your ability to deal with them.
Related reading
What is a floating charge? How it works and why lenders use it
A floating charge is a security interest that hovers over a shifting pool of assets — such as stock, trade…
Read →Does a fixed or floating charge affect my other lenders?
A charge ranks the secured lender ahead of unsecured creditors and can subordinate later lenders, so it…
Read →What does 'secured against company assets' mean?
Securing a loan against company assets gives the lender a claim over the business's property or equipment if…
Read →
What is a fixed and floating charge?
A fixed charge attaches to a specific asset; a floating charge covers a changing pool of assets like stock…
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.