Types of borrowers
Types of borrowers

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Types of borrowers
  • Companies
  • Companies limited by shares
  • Companies limited by guarantee
  • Unlimited companies
  • Community interest companies
  • Limited liability partnerships
  • General partnerships
  • Limited partnerships
  • Individuals
  • More...

This Practice Note gives a brief outline of the types of borrowers that might wish to borrow money and relevant legislation. It looks at:

  1. companies

  2. limited liability partnerships

  3. general partnerships

  4. limited partnerships

  5. individuals

  6. unincorporated associations, and

  7. local authorities

For specific information on each type of entity, see Practice Notes:

  1. Dealing with companies in a finance transaction—capacity and authority

  2. Dealing with limited liability partnerships in a finance transaction—investigating capacity and authority

  3. Dealing with a partnership in a finance transaction—investigating capacity and authority

  4. Dealing with a limited partnership in a finance transaction—investigating capacity and authority

  5. Dealing with individuals in a finance transaction—investigating capacity and authority

  6. Dealing with unincorporated associations in a finance transaction—investigating capacity and authority, and

  7. Dealing with local authorities in a finance transaction—investigating capacity and authority when lending to a local authority

Companies

Companies have separate legal personality and frequently borrow money in their own right to assist with temporary cashflow shortfalls and to fund capital expenditure. They may also contract in their capacity as partners or trustees of bodies with no separate legal personality. The following types of company can be incorporated under the Companies Act 2006 (CA 2006):

  1. a private company limited by shares

  2. a private company limited by guarantee

  3. a public company limited by shares or guarantee

  4. an unlimited company, or

  5. a community interest company

For more information on these types of companies, see: Structuring

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