# Fixed charge vs floating charge What a fixed charge and floating charge mean in UK business lending — what assets they cover, how a debenture works, and why Credicorp products are fully unsecured with no charge over any assets. **Site:** [creditcorp.co.uk/learn/what-is-a-fixed-charge-vs-floating-charge/](https://creditcorp.co.uk/learn/what-is-a-fixed-charge-vs-floating-charge/) Creditcorp is the growing name for the Credicorp group. Credicorp Limited is the lender behind it — short-term working capital for incorporated UK businesses. No personal guarantee on any product. This page is a guide; applications go to [credicorp.co.uk](https://credicorp.co.uk/). ## Contents - What each type of charge means - Fixed charge, floating charge and personal guarantee compared - Five things to check before signing any secured lending agreement - Fixed and floating charge questions - No charge. No debenture. No personal guarantee. ## Step-by-step guide **Step 1: Check whether a lender is taking a fixed or floating charge** Before signing any credit agreement, check the security section. Look for references to "debenture", "fixed charge", "floating charge", "all assets debenture", or "legal charge". If any of these appear, the lender is taking security over the company's assets. Understand what assets are covered and what the implications are on default before proceeding. **Step 2: Check whether a personal guarantee is being requested** A personal guarantee is a separate document from a debenture. It may accompany secured lending or appear in unsecured lending. Look for "personal guarantee", "director's guarantee", or "joint and several liability". If present, the director is agreeing to be personally liable for the company's debt. This is a significant personal commitment that should be understood and reviewed independently. **Step 3: Check whether security is being registered at Companies House** A debenture or fixed/floating charge must be registered at Companies House within 21 days of creation. This is a public record. If a lender is taking a debenture over the company, it will appear on the company's filing history. You can verify this on the Companies House register. **Step 4: Understand the priority ranking of charges** If a company has multiple creditors with fixed and floating charges, priority matters in an insolvency. Fixed charge holders rank ahead of floating charge holders, and both rank ahead of unsecured creditors. If the company has existing charges registered, new lenders may be lower in the priority queue. This affects the risk for both the company and existing secured creditors. **Step 5: Consider unsecured options where they meet the need** Where short-term working capital is the requirement, unsecured products (such as those offered by Credicorp) do not involve any debenture, charge, or personal guarantee. The borrower retains full control of all business assets. If the lending need is short-term and cash-flow based, unsecured products may be appropriate without the legal documentation and asset commitment of secured lending. ## Frequently asked questions **What is a fixed charge?** A fixed charge is a form of security a lender takes over a specific identified asset of the borrower — typically land, property, or specific equipment. The borrower cannot sell or dispose of that asset without the lender's consent. If the borrower defaults, the lender has the right to seize and sell that specific asset to recover the debt. A mortgage over a property is one common form of fixed charge. **What is a floating charge?** A floating charge is security over a class of assets that changes over time — typically the general assets of a business: stock, debtors, receivables, cash. Because these assets change day to day as the business trades, the charge "floats" over the pool rather than attaching to a specific item. If the borrower defaults, the floating charge crystallises — it fixes onto the assets at that moment and the lender can appoint a receiver to take control of them. **What is a debenture and does Credicorp take one?** A debenture is a formal document by which a company grants a lender security — often both a fixed charge over specific assets and a floating charge over the general asset pool. It is registered at Companies House. Debentures are common in larger, secured business lending — asset finance, property development finance, and some term loans. Credicorp does not take a debenture. All Credicorp products are unsecured. There is no charge of any kind over the company's assets. **Is a personal guarantee the same as a charge?** No. A personal guarantee is a separate commitment — a promise by an individual (usually a director) to repay the company's debt personally if the company cannot. A charge secures against assets; a personal guarantee secures against a person. Many secured lenders take both. Credicorp takes neither: no charge over any assets, no personal guarantee from any director. **Why does Credicorp not take a fixed or floating charge?** Credicorp's short-term products are designed to be quick, clean, and free of security obligations. Taking a debenture requires legal documentation, registration at Companies House, and typically solicitors on both sides — adding time and cost that is not appropriate for short-term working capital finance. The lending decision is based on the company's cash flow and ability to repay from trading income, not on the security available. A company director does not put any asset on the line — business or personal. ## About Creditcorp / Credicorp Credicorp Limited is a UK short-term business lender. Products: Business Bridging Loan (14–84 days, 0.25%/day), Credicorp Flex (revolving credit, 0.25%/day on drawn balance), Credicorp Slice (invoice-backed, flat fee). Incorporated UK companies and LLPs only. No personal guarantee. No debenture. Same-day decisions. Total charges capped at 100% of principal. - [Apply or get a quote](https://credicorp.co.uk/) - [Products overview](https://credicorp.co.uk/products/) - [Eligibility](https://credicorp.co.uk/eligibility/) - [All learn guides](https://creditcorp.co.uk/learn/)