This topic provides an overview of commercial finance customer types and some of the key legal and operational considerations for establishing and managing those entities.

Its purpose is to assist those in the finance sector:
• understand how to correctly identify the customer type
• ensure the customer type is correctly documented in the contract
• ensure the regulatory obligations that apply to each entity type are clearly understood and managed appropriately

The customer types covered are:
1. Sole Traders
2. Partnerships
3. Companies
4. Trusts
5. Incorporated Associations


For each customer type, we briefly explain:
• The legal structure and concepts
• What laws apply when providing finance to the entity
• Distinguishing liabilities – who owes what and when
• AML/CTF identification/verification obligations for each
• PPS registration requirements when a customer gives security over goods, equipment, intellectual property, financial rights etc
• Enforcement processes

This topic provides general guidance on customer types to assist those in the finance sector understand how the regulatory and contractual impacts on each.