As Leo has mentioned Trust is a complicated matter. As you have mentioned few reasons re: trust are:
• Tax minimisation
• Asset protection and but not limited to
• Inflating balance sheets and profits (caution should be taken on this comment)
In the scheme of things applicant is a small SME, hence, not real concern for short to medium term.
I would invest in the proposal based on the 2 recent bank sts (confirm no dishonours, gambling or overdrawn account), and financials (inconsistent but expected for such a business) coupled with current credit bureau (no signs of habitual high risk lenders).
This is my 2 cents, however, I would like to know if the credit application form customer completes contains caveat clause in the terms and conditions as a fall-back position (provided the director is property backed, hence are they?).