Fixed Charge

Posted in Finance, Accounting and Economics Terms, Total Reads: 855

Definition: Fixed Charge

Generally in case of repaying a loan a company or an individual mortgages a fixed asset (for ex, a flat, building, piece of land). The expense of this is known as fixed charge.

In this case suppose a lender A, borrower B and creditor C is in agreement. Then the asset will be signed over to C and B will be required to take due permission before selling the asset. The lender A will often register a charge until the loan which A has lend out has been paid back.

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