Yes, LLPs can always borrow from financial institutions as long as their paperwork is done properly. This is because LLPs are considered to be artificial legal persons by the law, who have all rights and duties that any other individual will have. In the eyes of the law, it is not a corporate entity that is borrowing the money, it is a person, who may not be tangible but who exists. So yes, LLPs can borrow from banks easily but in case they are unable to pay the money back, the bank also cannot go after any partner’s private assets.