Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- FLOATING LIEN
The name for and the nature of a creditor's interest in a debtor's accounts receivable and inventory. In the natural operation of any business, the specific receivables and inventory owned at one point in time are replaced over time by new receivables and new inventory. Thus a creditor’s security interest in accounts receivable and inventory floats from the specific accounts and inventory held today to that held next week, next month, and thereafter.Back