Floating charges over goods and individuals/unincorporated entities: never the twain shall meet?

One of the effects of the Bills of Sale Acts is that in practice they deprive individuals and unincorporated entities of the ability to provide floating charges over goods as security. This has an impact on sole traders and certain types of partnership.

As we approach the ten-year anniversary of the beginning of the Law Commission’s review of the Bills of Sale Acts perhaps it is time to remind ourselves exactly why this is the case and ask again when this might change.

What is a floating charge?

A floating charge is an equitable charge on a changing class of assets. It attaches to everything owned by the chargor within the relevant class of assets from time to time: the chargor can remove assets from the floating charge (for example if it sells them)...