Fixed Charge

How fixed charge works

The lender’s degree of control and the asset involved affect the legal classification. A borrower may need consent to sell or otherwise dispose of the charged property. Naming a charge fixed does not conclusively determine its status.

Practical UK business example

A company grants security over a particular commercial property. It checks the lender’s consent requirements before proposing to sell or refinance the property.

Illustrative example only; not a finance quotation or a client case study.

Why it matters

A fixed charge can give a lender direct security over a valuable asset. For the borrower, it reduces freedom to deal with that asset while the charge remains.

Limitations and common misconceptions

It is not identical to a floating charge over a changing asset class. Priority and enforcement require legal analysis and cannot be established from the label alone.

Discuss business borrowing to discuss how the structure relates to your business.