Business Banking & Finance Bank funding question.

Discussion in 'Starting & Running a Business' started by newbie70, 2nd Aug, 2018.

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  1. newbie70

    newbie70 Active Member

    Joined:
    1st Jul, 2018
    Posts:
    25
    Location:
    newcastle
    Hi all,

    Bank said yesterday that to borrow against a property (not owned by myself) for a company, that i would need to make the owner a beneficiary or director of the company.

    What does it actually mean, entail?

    Does the bank physically hold the deeds to the property? Can it be made as the only security to protect the home owners other assets?



    Thanks
     
    Last edited by a moderator: 2nd Aug, 2018
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    23,238
    Location:
    Australia wide
    Companies don't have beneficiaries. They have shareholders. You will need to ask the bank why they are referring to beneficiaries.

    A bank will take a mortgage over the security property. The deeds are all electronic these days, but they would generally 'hold' the title.