A floating charge is a security interest over a fund of changing assets of a company or a limited liability partnership (LLP), which 'floats' or 'hovers' until conversion into a fixed charge, at which point the charge attaches to specific assets.
Floating charges can only be granted by companies. If an individual person or a partnership was to purport to grant a
floating charge, it would be void as a general assignment in bankruptcy.
Floating charges take effect in equity only. The floating charge has been described as "one of equity's
most brilliant creations.