Ownership, Entities, and Responsibility in Borrowing Structures

Who earns income, who owns assets, and who carries legal responsibility are

central to lending outcomes.

Different ownership and borrowing structures can:

• redistribute risk
• alter income recognition
• change servicing calculations
• introduce guarantees or cross-liability

This section explains how structural relationships influence lending assessment.

Topics include:

• Individual versus joint borrowing
• Trust and company borrowing mechanics
• Director guarantees and responsibility
• Distribution of income and liability

Structure interacts with:

• Income recognition
• Deposit and equity position
• Policy sensitivity and exceptions

Understanding ownership explains why similar finances can lead to different results.