A fixed charge is a legal security interest attached to a specific, identifiable asset owned by a company — such as land, a building, or a major piece of plant and machinery. Once a fixed charge is registered, the company cannot sell, transfer, or otherwise deal with that asset without the chargeholder's permission.
How a fixed charge differs from a floating charge
Unlike a floating charge, which hovers over a shifting pool of assets (stock, debtors, cash), a fixed charge locks onto one defined asset from the moment it is created. In an insolvency, fixed charge holders rank ahead of most other creditors — including floating charge holders — when proceeds from that asset are distributed.
When fixed charges arise
Fixed charges are most common with property-backed lending, equipment finance, and debentures issued by larger companies. They must be registered at Companies House within 21 days of creation. Failure to register within that window renders the charge void against a liquidator or administrator.
Credicorp's approach to security
Credicorp does not require a director personal guarantee. Where security is taken, the arrangement is at company level. The specific security position for your facility will always be set out clearly in your loan agreement before you sign.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What is a floating charge and how does it work?, What does EBITDA mean in business finance?.