Floating Charge is a security interest or lien over a group of non-constant assets that may change in quantity and value. Floating charges are created by operation of law and do not need to be registered to exist. The floating charge only attaches to the freely moving assets of the company, so fixed assets such as buildings are outside its scope. These charges can be used for business finance purposes, typically to secure loans from banks.Floating charge has made it possible to lend money and give a charge on multiple assets, no longer will you be restricted by the value of your collateral. Now you can lend money secured by almost any type of asset, including shares, property and business assets without having to invest in each individually.Floating charge is a security interest over the assets of a company that may fluctuate in value or even change in composition. Unlike fixed charges, which are secured by the specific assets listed on the charge register, floating charges can be created over a wide range of assets and do not need to be listed specifically.
