If you borrow money from a bank they will not only look for a Fixed Charge (see above) on your assets they will also require a Floating Charge over assets which you may acquire in the future such as stock, machinery, vehicles and so on. In the event you fail to repay the bank they will exercise their Fixed and Floating charges, sell everything you own to pay off the debt and account to you for the surplus.
There rarely is a surplus but in fairness to the banks this is because seizing assets is a policy of last resort and by the time they do that, the writing is well and truly on the wall.
Bob Cory
Modified on 12/09/2019 at 09:03:35 by ℗ Bob Cory