floating charges help

"Is a floating charge not fixed because the amount that you could get is different depending on how much class of assets there are at the time of crystallisation" yes, but really the 'floating' element relates to the fact that the asset to which it relates is transient rather than relating to the amount that would become available It's the asset that floats and therefore the amount rather than the amount that floats "So for a floating charge debenture holder, it is what is left after all the more priority debenture holders and creditors have been paid?" Agreed "Is it correct to use the term creditors for people that are owed money via debt from the company or is debenture holders a more accurate term?" - either title would be appropriate. It's just that not all creditors are equal (to paraphrase George Orwell) - some are more equal than others "3. Is it right to think of fixed charge as collateral in the sense that if the company breaches their terms of loan agreement, the debenture holder has the right to sell the property and keep the proceeds from the sales?" Yes, provided that that right is written into the debenture agreement OK?

"But doesn’t a change in the amount of assets such as inventory, mean a change in value of the asset??" Yes, and that's the risk that the lender faces although, in practice, the lender can insist (say) that the levels of current assets shall not fall below (say) twice the value of current liabilities and, if it does fall below that benchmark, then the charge crystallises "3. So if the right to have the proceeds from the fixed charge asset is not written in the agreement, how exactly can fixed charge be applied to a specific asset in the sense that, how do you get your money or security from this asset for the money you loaned?" If the underlying value of the fixed charge asset falls to a value lower than the value of the secured loan, then .... .... tough! You should have been more prudent / cautious / thorough when assessing the value of that asset. Where, however, the borrower is taking steps to destroy / dismantle / damage the property that is the subject of the security, the lender is able to step in to prevent that damage being carried out OK?