Company Structure
A Company Structure describes how a business is legally organised — including directors, shareholders, ownership percentages, and the rules for control and decision-making. Lenders analyse company structure to determine signing authority, risk exposure, and whether personal guarantees are required during applications for Business Loans, Invoice Finance, Business Line of Credit, or even asset finance such as Vehicle Finance and Equipment Finance.
Why Company Structure Matters in Lending
Lenders must understand who controls the business, who owns it, and who is legally responsible for debts. Structure determines:
- Which directors must sign loan documents
- Who must provide guarantees
- Who holds voting or controlling power
- Risk level based on ownership split
- Eligibility for asset-backed or unsecured loans
Company Structure works alongside ASIC data, ACN, Company Constitution, Shareholder, Director, Trust, Trading Trust, Corporate Trustee, Partnership, and Pty Ltd information.
Common Company Structures in Australia
- Pty Ltd — privately owned company with limited liability
- Public Company — can offer shares to the public
- Trading Trust — trust with a corporate trustee operating a business
- Unit Trust — ownership through unit holders
- Sole Director / Sole Shareholder — simplified control
- Multiple Directors — shared responsibility for decisions
How Company Structure Works
- Registered and recorded through ASIC
- Defines who controls the company
- Determines how shares are held or transferred
- Impacts borrowing authority and risk assessment
- Changes must be lodged with ASIC
If you're weighing up which structure best supports your growth plans, the Business Owners Finance Hub and our guide on building a business cashflow system show how structure interacts with working capital, lines of credit, and invoice finance.
Official source: asic.gov.au