Company and trust documents for a business loan: sole trader, company or trust

Before a lender can lend, it has to know exactly who it’s lending to. That sounds obvious, but Australian businesses come in several shapes — sole traders, partnerships, companies, trusts with corporate trustees, groups of related entities — and each needs slightly different paperwork. Getting the structure documents right early prevents one of the most avoidable delays in a loan file. This page sets out what’s usually needed for each structure.

Why structure matters to a lender

The structure tells the lender:

• Who the borrower is — the person, company or trustee entering the loan
• Who can sign — directors, trustees, partners
• Who should guarantee — usually directors and sometimes other owners
• Who owns the security — if property is offered, which entity holds it
• Whose financials to assess — the borrower’s, and sometimes related entities’

Documents by structure

Structure	Typical documents
Sole trader	ABN, photo ID, personal tax returns and notices of assessment
Partnership	ABN, partnership agreement if any, ID for each partner, partnership tax returns
Company	ACN and ABN, ASIC current company extract, ID for each director, company financials and returns
Trust with individual trustee	Trust deed and variations, trustee ID, trust financials and returns
Trust with corporate trustee	Trust deed and variations, ASIC extract for the trustee company, ID for its directors, trust financials and returns

Companies: the ASIC extract

ASIC lets anyone search the company register by name, registered business name or ACN. Basic details are free, and a current company extract costs $10 (current and historical, $20). The extract shows:

• Registered office and principal place of business
• Current directors and secretary
• Share structure and shareholders

Lenders use it to confirm who the directors are — and therefore who signs and who guarantees. Make sure ASIC’s records are up to date before you apply; an old director still listed, or a new one missing, causes delays.

Trusts: the deed matters

Business.gov.au notes that a trust needs a formal trust deed outlining how it operates, and that a trustee can be a person or a company. For lending, the deed is checked for:

• Power to borrow and to give guarantees and security
• The trustee’s identity and any changes since the trust was set up
• The appointor — the person who can change the trustee
• Beneficiaries — particularly for guarantees from related parties

Provide the original deed and every variation. If a corporate trustee is involved, add its ASIC extract. Missing variations are a common hold-up, so ask your accountant or lawyer to locate them early.

Guarantees

Most business lenders ask directors to provide personal guarantees. For trusts with a corporate trustee, that usually means the trustee company’s directors. Some lenders also ask for guarantees from shareholders or from entities that own security property. A guarantee links personal assets to the business debt, so it’s worth discussing with your financial planner and, if you’re unsure, a lawyer before signing.

When the property sits in a different entity

It’s common for property to be owned by someone other than the borrowing entity — the directors personally, a family trust or a separate property company. That property can usually still secure the loan if:

• The owner agrees and signs the mortgage
• The owning entity has the power to give security (check the trust deed or company constitution)
• The owner provides a guarantee

See property equity and secured loans for how lenders size secured loans.

Group structures

If the business operates through several entities, provide a simple one-page diagram showing:

• Each entity, its ABN and ACN
• Who owns or controls each one
• Which entity trades, which holds assets, and which will borrow
• Any loans between entities

Your accountant can prepare this in minutes, and it saves a lender hours.

Getting it ready

Our Link-up checklist builder asks for your structure — sole trader, company or trust — and adds the right documents to the list automatically, split into what you provide and what your adviser provides.

An illustrative example

A hypothetical electrical contracting business trades through a discretionary trust with a corporate trustee. The family home is owned by the two directors personally. For a secured business loan, the lender asks for the trust deed and two variations, the trustee company’s ASIC extract, ID for both directors, the trust’s financials and returns, and the home’s rates notice and mortgage statement. The directors sign the loan for the trustee, mortgage their home and give personal guarantees. Because the accountant sent the deed and a structure diagram on day one, there are no follow-up requests. The scenario is illustrative.

Keeping structure documents current

Structure paperwork tends to be dug out only when something needs it. A few minutes of upkeep each year avoids a scramble: check ASIC records after any director change, keep every trust deed variation with the original, and note any change of trustee or appointor. Ask your accountant to keep a copy of each on the client file so they can be supplied the same day a lender asks.

Get the structure right, then get matched

Once your structure documents are in order, the rest of the file comes together quickly. Make a 60-second enquiry and tell us how your business is structured. There’s no credit check to enquire, your details are linked to one well-suited lender rather than distributed widely, and a real person calls you to go through it. Please be accurate about the entity and who owns any property — it shapes which lender fits. Start your enquiry.