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hello and welcome back to acc masters in this video we will see the difference between fixed and floating charge but before going to see the difference between both of them we should know the meaning of charge as we know every company needs cash in order to operate its day-to-day activity so there are two main sources of obtaining cash for the company for example by selling share or the company can get cash in a form of loan now lets say the company has taken loan from any bank then the bank may want to secure this loan amount against the companys asset that means in case if the company failed to pay this loan amount then the bank can sell the assets of the company to recover its amount and in more technical words we can say the bank want to charge our companys assets okay so now we have two main type of charges for example the fixed charge and floating charge in case of fixed charge the bank may want to secure this loan amount against the fixed assets of the company such as buildi