Multiple shareholders or beneficiaries borrowing for investment

When it comes to using a company in its own right or as trustee for a trust structure to hold properties, if these structures show multiple shareholders or listed beneficiaries on documents, would this increase the complexity of the credit applications and potentially decrease the borrowing power of these structures?

Would banks normally want to see the financials of all shareholders and beneficiaries and ask everyone that shows up on the documents to provide guarantee to the loan?

Or do banks normally just ask the directors to provide personal guarantee and look at their personal financials to work out serviceability?

 

Loans for entities are more complex. I would be suggesting a broker assist and support you based on specific information. Its not unusual for lenders to have concerns with one or more parties and sometimes changes can assist and other times it cant or wont. Lenders typically may exclude servicing that considers positive and/or negative gearing etc and may assume 100% liability with each party, not a % of it.