Floating charge
Security over a changing class of company assets, such as stock or receivables, allowing the company to deal with them in the ordinary course of business until the charge crystallises.
Related terms
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Crystallisation of a floating charge
The point when a floating charge stops floating over changing assets and attaches more firmly to assets covered by the security, usually following a specified event.
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Qualifying floating charge
A floating charge meeting statutory conditions that can give its holder specific rights, including in relation to administration.
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Qualifying Floating Charge Holder (QFCH)
A secured creditor holding a qualifying floating charge with statutory rights, including the ability in certain circumstances to appoint an administrator.
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