Floating Charge Receivers

A floating charge receiver is a type of financial arrangement used primarily in business financing. When a company borrows money, it can offer a "floating charge" over its assets, which means that the lender has a claim on those assets if the company defaults. The charge "floats," allowing the company to use and change its assets freely until it faces insolvency. If the company fails, the floating charge turns into a fixed charge, and the receiver takes control of the business's assets to repay the lender. This provides a level of security for the lender while allowing the business flexibility.