Business debt consolidation and refinancing

When a business is paying off several debts at once, it is easy to lose track. Each has its own instalment, its own due date and its own terms. Add pressure from suppliers and it can feel like going round in circles. Many business owners go through this, and there is nothing to be ashamed of. What matters is looking at it calmly, with the numbers on the table.

Combining debts into one facility secured by real estate can bring clarity and more manageable repayments. It is not right for everyone, though. 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 judge whether the change genuinely pays off.

When refinancing makes sense

Refinancing usually helps if:

• you have several smaller loans or leases with high instalments,
• some debts are due soon and are squeezing your cash flow,
• you want one clear payment instead of many,
• the business is fundamentally viable but the debt structure is wrong.

If the business has been losing money for a long time, a new loan will not fix that. It simply moves the problem onto the property. In that case we will say so and suggest another route, such as speaking with a tax adviser or a restructuring specialist.

How it works with us

We build an overview

Together we list every liability: who you owe, how much, on what terms and by when. Having that overview alone often brings relief.

We check the property and the company

The first formal step is a review of the title deed, the list vlastnictví (LV). It is an extract from the Czech Land Registry (katastr nemovitostí) that shows ownership and any rights attached to the property. We look for mortgages, enforcement orders, easements and a 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 compare today and tomorrow

We prepare a simple comparison: what you pay if nothing changes, and what you pay after refinancing. We compare total costs, not just the monthly instalment. A lower payment spread over a longer period can cost more in the end.

We help you carry it out

If you decide to go ahead, we help with documents and coordination. The new lender usually pays the old creditors directly, and their pledges are removed from the Land Registry.

What affects the cost

The total cost is made up of:

• the interest rate on the new financing,
• arrangement, valuation, notary and Land Registry fees,
• early repayment fees on your existing loans,
• the term of the new loan,
• translation costs, if needed,
• our fee, which we always state in advance and in writing.

The terms on offer depend mainly on the value and saleability of the property, total debt relative to that value, and how stable your business income is.

Risks

Refinancing has a downside, and we want you to understand it:

• Unsecured debts become secured. If you do not repay the new facility, the lender can enforce the pledge and sell the property.
• A longer term can mean higher total costs.
• New debt after refinancing. If you borrow again on top, you may end up worse off than before.
• Contract terms. Read the penalty and early repayment clauses carefully. If you do not read Czech, ask for a translation.

We recommend having the contract reviewed by an independent lawyer. If refinancing does not improve your situation, we will not push you into it.

When things feel tight

If reminder letters are arriving or enforcement is looming, feeling stressed is natural. Do not put off talking to your creditors, though. They are often more willing to negotiate when you contact them early. In the consultation we help you sort debts by urgency and decide what to tackle first. Refinancing is not the only option. Sometimes a payment plan with a supplier or selling assets you no longer need makes more sense, and we look at those options too.

Documents to prepare

• your IČO and basic company details,
• a list of all debts with balances and instalments,
• loan and lease agreements, plus any creditor demands,
• the title deed number (LV) or the property address,
• your latest tax return or financial statements,
• recent bank statements.

It is fine if not everything is in one place yet. We start with what you have and fill in the rest together.