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I had heard from an individual a Trust could get commercial financing but I've never known anyone who has, do anyone know if what I was told is factual?
I realize a trust is an entity of it's own but can it borrow? A regular business could borrow funds but if the business lacked commercial credit one of the principles would have to secure it with their personal credit.
If you have a trust wouldn't a trustee have to secure it with their personal credit if it lacked commercial credit?
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#1. I dont see why a trust, corporation or otherwise ought not be able to borrow money.
#2 If the trust declaration or whatever foundational documents might underly the trust dont forbid placing the trust corpus/trust estate up as security for a loan then there you go.
#3 No a trustee wouldnt have to secure it with their own personal credit if the lender didn't require such. Its possible that an automobile in the trust estate could be utilized to secure a loan.
#4 I would suggest signing documents for the trust ", Trustee" or ", as Trustee" to avoid errant presumption that you are taking liability for the trust.
#5 Your inquiry is rather general and the specifics and variations may vary the reply. Keep in mind that making a trust "irrevocable" is likely key to it being not seen as a sham or alter ego of its settlor.