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In this final block of *Finance in Fifteen*, David and Trevor look at why lenders protect themselves by taking a legal charge over a business and/or specific assets.

In the previous episode, they explained why lenders ask for Personal Guarantees. A charge, however, offers a different level of security, and it is important that business owners clearly understand what this means and how it affects them.

As is often the case in business finance, things are rarely simple and not always explained well. Lenders may take fixed charges, floating charges, or sometimes a combination of both. Charges can also rank as 1st or 2nd, and some may be fixed solely against individual assets such as property, land, or other tangible assets.

Before agreeing to any form of charge or guarantee, business owners should understand why it is being taken and have the advantages and disadvantages clearly explained.

In a complex and often unregulated market, no decision about providing security should be made without proper guidance, whether from a legal adviser or a member of The Guild of Business Finance Professionals.

For further information, please do contact the show at podcast@bfpguild.org

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