Fixed charge - How To Discuss

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Fixed charge,

Definition of Fixed charge:

  • Lien or mortgage on a specific fixed-asset (such as a parcel of land) to secure the repayment of a loan. In this arrangement the asset is signed over to the creditor and the borrower would need the lenders permission to sell it. The lender also registers a charge against the asset which remains in force until the loan is repaid. Also called fixed debenture. See also floating charge and fixed charges.

  • A liability to a creditor which relates to specific assets of a company.

    • How to use Fixed charge in a sentence?

  • The conceptual distinction between a floating charge and a fixed charge is complicated by the fact that a fixed charge may cover future assets and attach as soon as the debtor acquires those assets.

    • Meaning of Fixed charge & Fixed charge Definition

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