Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Floating charge definition

What does Floating charge mean? A floating charge is a security interest over a changing pool of assets (present and future) that the chargor may deal with in the ordinary course of business until the charge fixes to those assets. It is typically granted by companies or LLPs under an all‑assets debenture. In England & Wales and Northern Ireland its key features are developed by case law and statute: the charge “crystallises” on agreed or insolvency events and then operates like a fixed charge over the assets then subject to it. In Scotland, floating charges exist only by statute and “attach” on specified...

Floating charges: creation, operation and enforcement—characteristics, drafting in debentures, qualifying floating charges, crystallisation, perfection, priority and administration

Published by a LexisNexis Banking & Finance expert

Practice notes

floating charges are typically set out within a debenture, alongside other security interests such as fixed charges, assignments, and legal mortgages. Including a floating charge can deliver significant advantages to secured lenders (see Reasons for taking a floating charge below). This Practice Note addresses the following topics:

the characteristics and nature of a floating charge
the rationale for, and benefits of, taking a floating charge
who is able to grant a floating charge
principal considerations when taking a floating charge, and
issues of perfection, priority and enforcement

What is a floating charge?...

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Web page updated on 21/05/2026

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