Bridge financing for businesses

Sometimes a business is not in trouble. It simply has money in the wrong place at the wrong time. A property sale is agreed, but the purchase price will only arrive later. A building is waiting for kolaudace, the Czech occupancy approval that must be granted before a new building can be used and before long-term financing can be drawn. A grant has been approved but is paid retrospectively. Bridge financing secured by real estate can cover that period.

We work only with businesses that have a Czech company ID (IČO). ICORENT is not a bank. We help you find a suitable non-bank lender and set up financing that matches your real source of repayment.

Typical situations

• Waiting for a property sale while you need capital for the next step, such as new premises.
• Waiting for occupancy approval or project completion, after which long-term financing becomes available.
• Waiting for a grant payout and needing to pre-finance project costs.
• Waiting for payment on a large contract from a reliable customer while you cover operations.

What these have in common: you know where the money is coming from and roughly when. If that is not clear, a different solution is better.

How it works with us

We understand what you are waiting for

In the consultation we go through the income you expect, what it depends on and what happens if it is delayed. With bridge financing, the repayment source is the most important thing.

We check the property and the company

The first step is a review of the title deed, the list vlastnictví (LV), an extract from the Czech Land Registry (katastr nemovitostí). We check ownership, mortgages, enforcement orders, easements and any plomba, a flag meaning a registry proceeding is pending. We verify the company in ARES (the business register), the insolvency register and the VAT register.

We set the term with a buffer

We plan the loan term realistically, with room to spare. We also find out under what conditions the loan can be extended or repaid early without unnecessary penalties.

We see you through to drawdown

We help choose the lender, prepare documents and coordinate registration of the pledge in the Land Registry.

Think ahead

Bridge financing is safest when you have a plan B. Ask yourself:

• What will I do if the sale takes several months longer?
• What if the authority asks for more documents before granting occupancy approval?
• What if the grant payout is held up by an audit?
• Do I have another source from which I could repay the loan, or at least pay the interest?

You do not need perfect answers. But it is good to think them through before you sign. We are happy to go through them with you.

What affects the cost

Short-term financing tends to cost more than long-term. The total cost includes:

• the interest rate and how it is calculated,
• one-off arrangement, valuation, notary and Land Registry fees,
• extension fees, should an extension be needed,
• early repayment terms,
• our fee, which we state in advance.

Terms depend mainly on the value and saleability of the property, how certain the repayment source and its timing are, and the loan term. Because one-off fees are spread over only a few months, it is worth calculating the total amount you will pay.

Risks

• Delays. Sales, approvals and grant payouts can drag on. Extending the loan costs money and is not always possible.
• Losing the property. If the loan is not repaid, the lender can enforce the pledge and sell the property.
• A single repayment. Bridge loans are often repaid in one lump sum at the end. You need to be ready for that moment.
• Contract terms. Read the default penalties and extension conditions. If you do not read Czech, ask for a translation.

We recommend having the contract reviewed by an independent lawyer. If the risk of delay looks too high, we will tell you.

Documents to prepare

• your IČO and basic company details,
• the title deed number (LV) or the address of the property to be pledged,
• evidence of the expected income, such as a purchase agreement, grant decision or building documentation,
• an overview of current liabilities,
• your latest tax return or financial statements.

The more clearly you can show where and when the money will come from, the easier it is for a lender to assess the risk. We can still start with incomplete documents.