Meaning of “fixed charge” in the English Dictionary

"fixed charge" in Business English

See all translations

fixed chargenoun [ C ]

uk us

ACCOUNTING a business cost such as rent, interest, and insurance that does not change with the amount of business that a company does:

The company's statement of income and ratio of earnings to fixed charges.

a regular amount of money paid for something, that does not change:

Consumers and small businesses can gain unlimited Net access by paying a single fixed charge each month.

FINANCE, LAW an arrangement in which a lender has the right to take and sell a particular asset from a borrower if the borrower does not pay the loan back:

Fixed charges give banks the legal right to payment from a borrower ahead of all other creditors.

(Definition of “fixed charge” from the Cambridge Business English Dictionary © Cambridge University Press)