A Partnership is a business structure where two or more people share ownership, profits, losses, tax obligations, and decision-making. For lending, each partner’s personal income, liabilities, bank statements, and business revenue contribute to the overall borrowing capacity. Partnerships frequently apply for Business Loans, Working Capital Loans, and Low Doc Asset Finance.

Why Partnership Structure Matters

Lenders assess partnerships differently because financial responsibility is shared. Each partner’s credit score, income, and liabilities influence:

• Serviceability and borrowing power
• Eligibility for low doc lending
• Risk rating and approval speed
• Joint liability for business debt
• Cashflow strength and GST reporting

Common Features of Partnerships

• Two or more owners sharing profits and losses
• Uses a joint ABN or partnership agreement
• Partners pay tax individually on their share of income
• Lower setup cost than a company
• Personal liability still applies unless it's a limited partnership

Partnerships often rely on invoice finance and business lines of credit to smooth cashflow between projects and client payments.

To see how different partnership setups approach funding in practice, explore our Business Owners Finance Hub, plus deep dives like Working Capital Loans 2025 and the Business Line of Credit Guide.

Official reference: business.gov.au