Financing for entrepreneurs and large amounts in the Czech Republic
Business financing in the Czech Republic is needed to purchase equipment, real estate, vehicles, expand a company, or launch a new project, and the appropriate instrument depends on the amount, purpose, and the business’s current financial position.
International Law Firm "Zahist" has its own representative office in the Czech Republic and for many years has helped entrepreneurs and companies analyse real financing options rather than limiting themselves to a single standard product from the first bank they approach.
Our experience shows that business financing differs markedly from an ordinary consumer loan: the bank assesses not only the owner’s income, but the entire economics of the project — from the business plan to the proposed collateral.
What types of financing are available to entrepreneurs
We work both with sole traders (OSVČ) and with legal entities and companies — the set of available instruments and banks’ requirements in these cases differ significantly.
- Development and expansion of an existing business
- Acquisition of equipment and machinery
- Financing of cars and vehicles for business use
- Acquisition of commercial real estate
- Financing of investment projects
Who regulates the business lending market
The activities of banks and non-bank financial companies in the Czech Republic are supervised by the Czech National Bank (ČNB), which maintains a register of licensed market participants.
Before approaching a little-known lender, it is worth checking whether it appears in this register — especially where a substantial amount for a major project is involved.
Financing of large amounts and investment projects
A separate area is the search for financing for clients who need significant amounts for large-scale projects or investments, where a standard retail credit product is no longer sufficient.
In such cases it is particularly important to analyse precisely the purpose of the financing, the client’s financial position, possible collateral, and the options genuinely available on the market, rather than looking for a single universal loan.
Instead of a template product, we review the situation comprehensively and seek a solution tailored to the specific project — sometimes this is a combination of a bank loan and a state guarantee, rather than a single instrument.
What banks take into account when reviewing an application
For a sole trader, the bank usually requests tax returns for 1–2 years, confirmation of filing and payment of taxes, as well as account statements confirming the business’s actual turnover.
The applicant must not be subject to enforcement proceedings, liquidation, or insolvency proceedings and must not have overdue obligations to the tax authority or the social insurance system.
For an investment loan, a business plan describing the activity, a financial forecast, and a project implementation schedule is almost always required — without it the bank cannot assess the real risk.
Loan collateral: what can be offered to the bank
Smaller amounts are sometimes granted without security, but the larger the financing, the more often the bank requires collateral — a pledge of assets, a third-party guarantee, or a promissory note.
Our experience shows that clients who prepare several collateral options in advance obtain more flexible terms on rate and tenor than those who offer the bank only one option with no alternatives.
State guarantees and support programmes
Part of the bank’s risk may be assumed by the state: the National Development Bank (formerly ČMZRB), together with the European Investment Fund, provides guarantees on loans to small businesses amounting to tens of billions of crowns under the “Záruka” programme.
The Garant InvestEU programme covers up to 70% of the loan amount for small, medium-sized, and certain mid-large companies, while the entrepreneur continues to deal only with the lending bank, which itself arranges the guarantee as well.
Separately, interest-free NRB programmes operate — Expanze for business development and Expanze for family enterprises, aimed at companies with up to 250 employees.
Combined solutions for complex projects
Sometimes the optimal solution is not a single product but a combination: part of the amount is covered by a bank loan backed by a state guarantee, and part by leasing of specific equipment or vehicles.
This approach reduces pressure on the company’s collateral base and allows financing to be spread across several sources with different tenors and repayment terms.
Comparison of the main financing instruments
| Instrument | For whom | Feature |
| Standard podnikatelský úvěr | Sole traders and companies | Fast processing, often with collateral |
| Investiční úvěr | Companies with a project | Requires a business plan and financial forecast |
| Loan with NRB/EIF guarantee | Small and medium-sized businesses | Guarantee of up to 70% of the amount, softer requirements |
| Leasing of equipment/vehicles | Sole traders and companies | The asset remains owned by the lessor |
Leasing as an alternative to a loan
To purchase equipment, machinery, or commercial vehicles, many companies choose leasing instead of a loan — the asset formally remains the property of the leasing company until payments are completed.
This option is often arranged faster than a bank loan and does not always require the same volume of documents, but the total overpayment depends on the specific contract terms no less than with a loan.
Our experience shows that leasing and a loan should be compared using a single methodology — taking into account the full cost of ownership of the asset over the entire term, and not only the size of the monthly payment.
Specifics for Ukrainian entrepreneurs in the Czech Republic
Holding temporary protection status (dočasná ochrana) does not in itself preclude obtaining business financing, but banks usually require a longer history of operating in the Czech Republic and stable account turnover.
International Law Firm "Zahist" regularly advises Ukrainian entrepreneurs precisely on such matters — which banks and programmes are more favourable toward recently registered businesses and which documents should be prepared in advance.
Which documents should be prepared in advance
The standard package includes tax returns, account statements, confirmation of business registration and, for investment financing, a detailed business plan with a financial section.
- Gather tax returns and confirmations of tax payment for 1–2 years
- Prepare statements for the business current account
- Describe the purpose of the financing and the expected effect for the company
- Consider possible options for securing the loan
How the cost of financing is calculated
The rate on a business loan depends on the amount, term, availability of collateral, industry, and the company’s financial indicators — the more transparent the reporting, the lower the final rate usually is.
A state guarantee reduces the bank’s risk and can therefore materially improve terms compared with a standard unsecured loan for the same amount and the same client.
Our experience shows that overall attractiveness should be compared on the basis of the full cost of financing over the entire term, and not only the nominal interest rate in the bank’s advertising.
An individual approach to each project
The first step is always a consultation at which the required amount, the purpose of the financing, the financial situation of the entrepreneur or company, possible collateral options, as well as the client’s timelines and expectations are determined.
This approach helps avoid a situation in which an entrepreneur spends weeks negotiating with a bank only to receive a refusal due to a failure to meet basic requirements that could have been anticipated in advance.
Typical mistakes when seeking financing
The first mistake is to approach a single bank immediately without comparing terms and available state guarantees, which can significantly reduce collateral requirements.
The second is to submit an application without a prepared business plan where the bank expects to see a financial forecast, which almost certainly leads to refusal or a prolonged review.
The third is to underestimate the importance of business history: banks carefully examine account turnover and the timeliness of tax payments for prior periods.
How we help select financing
Business financing differs markedly from ordinary consumer credit, so the first step is always a consultation at which we determine the required amount, the purpose, the financial situation, and possible collateral.
After analyzing the situation, it becomes clear which options for business financing in the Czech Republic are realistically available and which further path will be most appropriate for the specific project.
If you need business financing in the Czech Republic for a specific project, it is better to discuss the situation with a specialist in advance rather than waste time applying to banks without a prior assessment of the chances of approval.
