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A ltd needs to raise finance for the expansion of its fresh food business. A ltd decided to borrow a loan from B ltd. B
A ltd needs to raise finance for the expansion of its fresh food business. A ltd decided to borrow a loan from B ltd. B requires A to provide security for the loan. A owns land, buildings, plant and equipment and trading stock (food for resale).
Question:
Should B take a fixed or floating charge by way of security for its loan to A? Which form of security would you recommend and why would you recommend it?
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