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Investments glossary

Floating Charge


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A floating charge, also known as a floating lien, is a security interest or lien over a group of non-constant assets. The assets may change in quantity and value. Companies will use floating charges as a means of securing a loan. Typically, a loan might be secured by fixed assets such as property or equipment, but with a floating charge, the underlying assets are usually current assets or short-term assets that can change in value.


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