Property-secured business loans in the Czech Republic

If your business needs capital and the bank has said no, you are not alone. It happens to healthy companies too, and it happens more often to foreign-owned businesses whose history does not fit a local bank's scoring model. A loan secured by real estate is one way to raise capital when you own property but the bank's numbers do not line up. Our job is to help you work out whether it is the right route for you, and if it is, to walk you through it calmly and clearly.

We work only with businesses that have a Czech company ID (IČO), and only for business purposes. This is not consumer credit. ICORENT is not a bank. We are advisers who find a suitable non-bank lender and help you understand the offers.

What it is typically used for

Our clients usually use secured business loans for:

• working capital, such as buying stock or pre-financing a contract,
• investment in machinery, equipment or refurbishment,
• covering a temporary dip in income when there is a clear end in sight,
• buying another property for the business.

Because the loan is secured, the lender focuses more on the value and saleability of the property. They will still want to see how you plan to repay. A loan without a sensible repayment plan does not solve anything. It just moves the problem further down the road.

How it works with us

We start with the paperwork

The first step is always a review of the title deed. In Czechia this is called the list vlastnictví (LV), an extract from the Land Registry (katastr nemovitostí). It shows who owns the property and what rights and restrictions apply to it. We look for existing mortgages, enforcement orders, easements and a plomba, which is a flag showing that a registry proceeding is under way. We also check your company in public registers: ARES (the business register), the insolvency register and the VAT register.

We find a suitable lender

Based on your situation, we approach lenders who work with similar cases. We present the offers side by side in plain language so you can compare them properly.

We stay with you until drawdown

We help with documents and coordinate with the lender and the notary or lawyer. You always sign yourself, and you always have time to read the contract. If you do not read Czech, insist on a translation or an English version before signing.

What affects the cost

The price of a loan is more than the interest rate. Look at the total cost, which includes:

• the interest rate and how it is calculated,
• arrangement, valuation and administration fees,
• notary and Land Registry fees,
• default penalties and early repayment terms,
• translation costs, if needed,
• our arrangement fee, which we always state in advance.

The main factors are the type, location and saleability of the property, the loan amount relative to its value, the loan term, the condition of the business and how clear the repayment source is. Non-bank financing is generally more expensive than bank lending. In return it can be more accessible and faster.

Risks you need to know about

We want you to go into this with your eyes open:

• You can lose the property. If the loan is not repaid, the lender can enforce the pledge and sell the property.
• Total costs can be high. Compare the full amount you will pay, not just the monthly instalment.
• The contract terms matter. Read the penalties, maturity and early repayment clauses.
• Third-party security. If a director or family member pledges their property, they put their own assets at risk.

We recommend having the contract reviewed by an independent lawyer or tax adviser. If our review shows a loan does not make sense for you, we will tell you so.

Documents to prepare

You need very little to start. We add the rest step by step:

• your IČO and basic company information,
• the title deed number (LV) or the property address,
• a short description of what the money is for and how you will repay it,
• an overview of your current loans and liabilities,
• your latest tax return or financial statements,
• recent bank statements if available.

You do not need everything at once. At the first consultation we agree on what is needed in your case.