Corporate Trustee
A Corporate Trustee is a company appointed to run and manage a trust on behalf of beneficiaries. Lenders prefer corporate trustees because they offer stronger asset protection, clearer governance, and a defined legal structure for borrowing. Corporate trustees are used in Trusts, Trading Trusts, and structures where borrowing authority must be formally documented. They frequently apply for Business Loans, Working Capital Loans, and Low Doc Asset Finance. Business owners using trust structures can also explore our Business Owners Finance Hub for more trust-friendly finance strategies.
Why Corporate Trustees Matter
A corporate trustee separates personal assets from trust liabilities, offering more protection and cleaner lending pathways.
- Clearer and stronger authority to borrow
- Better asset protection for beneficiaries
- Improved governance and decision-making
- Personal liability is reduced (but not always removed)
- Lenders can verify directors through ASIC records
Corporate trustees are commonly used for trusts that intend to apply for Invoice Finance or Business Lines of Credit, because lenders require clear legal authority. For a bigger-picture view of how these products work together, see our Business Cashflow System (WCL + LOC + Invoice) guide.
Common Features of Corporate Trustees
- Registered company (Pty Ltd) acting as trustee
- Directors control trust decisions
- Trust deed outlines authority to borrow
- Reduces personal liability for beneficiaries
- Preferred structure for business-active trusts
Official reference: asic.gov.au