Loans and borrowings can fund equipment, acquisitions, property, working capital and growth. In Irish company accounts they may appear across current and long-term creditors, lease notes, cash flows and security disclosures. The headline total is only a starting point: repayment dates, interest, covenants, collateral and dependence on refinancing determine the practical risk.
Direct answer
Find bank loans, overdrafts, leases, debentures and other finance under creditors due within one year and after more than one year. Read the notes for maturity, interest, security and covenant terms, then compare debt with cash and operating cash generation. Check CRO charges separately. A registered charge does not reveal the current amount owed, and no charge does not prove that the company has no debt.
Confirm the borrower
Match the legal company and CRO number to the finance or commercial contract. A group may borrow centrally while subsidiaries owe intercompany balances, or one company may provide security for another. Identify whether the accounts are entity-only or consolidated and whether balances are owed to banks, directors, shareholders or group companies.
Build a timeline from consecutive accounts and charge filings. The guide to Irish company charges and mortgages explains C1 registrations and satisfaction documents.
Types of finance to look for
| Finance | Where it may appear | Key question |
|---|---|---|
| Overdraft | Current creditors and cash-flow or banking notes | Is it repayable on demand and within an agreed facility? |
| Term loan | Current instalments plus amounts due after one year | What is the maturity schedule and covenant headroom? |
| Asset finance or lease | Current and non-current lease liabilities | Which assets and future payments are committed? |
| Director or shareholder loan | Related-party, debtor or creditor notes | Is it subordinated, interest-bearing or repayable on demand? |
| Group funding | Amounts owed to group undertakings | Can support be withdrawn, and can the provider continue funding? |
| Invoice finance | Borrowings, debtor or accounting-policy notes | Are receivables assigned, with or without recourse? |
Current versus long-term classification
Amounts due within one year create nearer-term liquidity needs. Long-term classification can still hide important risks if covenants allow acceleration or a refinancing date falls soon after the accounts. Schedule 3 treats a loan as falling due on the earliest date the lender could require payment when exercising available rights.
Compare current loan instalments with cash, undrawn committed facilities and forecast operating cash. If a major facility matured after year end, obtain evidence of repayment or renewal rather than assuming it rolled forward.
Interest cost and affordability
Interest expense can be disclosed separately for bank loans and overdrafts, group loans and other borrowing. Compare finance cost with average debt and the stated interest basis. A sharp increase can reflect higher rates, more borrowing, default interest, fees or foreign-currency effects.
Interest cover is often estimated using a defined profit measure divided by finance cost. The formula is not universal. Cash interest cover and fixed-charge coverage may be more useful where leases or non-cash charges are important. Always state your calculation and test a downside scenario.
Security and registered charges
A lender may take security over property, receivables, bank accounts, shares or all company assets. Search CRO charge filings and inspect the underlying document where available. Note the secured party, assets, creation date and whether a C6 or C7 indicates full or partial satisfaction.
Charge registration does not prove a facility remains drawn, while satisfaction can lag commercial repayment. Conversely, unsecured loans, leases, retention-of-title rights and some arrangements may not appear as a company charge. Reconcile the register to lender statements and legal documents.
Covenants and refinancing risk
Common covenants relate to leverage, interest cover, net assets, liquidity, information delivery and permitted distributions. A breach can trigger waiver negotiations, higher pricing, restrictions or acceleration depending on the agreement. Public accounts may mention a breach or going-concern effect, but detailed covenant calculations are often private.
Refinancing risk increases when a large maturity approaches, cash generation is weak, collateral values fall or the lender’s appetite changes. Ask for the debt schedule, current covenant certificate, facility expiry, correspondence and approved refinancing plan.
Debt, cash and cash flow belong together
Gross debt can overstate risk where the company has genuinely available cash, but netting everything can also mislead when cash is restricted, belongs to another group entity or is needed for working capital. Read why year-end cash can mislead and how to analyse cash flow.
A business that generates recurring operating cash may support more debt than one dependent on asset sales or fresh shareholder funding. Compare debt growth with capital expenditure, acquisitions, dividends and working-capital movements.
Worked interpretation example
Assume a company reports €2.5 million of bank debt, including €1.4 million due within one year, against €250,000 cash. Operating cash flow was €500,000, but €300,000 of that came from stretching creditors. A property charge secures the facility and the accounts mention renewal discussions.
The business may refinance successfully, but the public record does not prove it. Request the signed renewal, current facility utilisation, covenant position, creditor ageing and property valuation. Stress-test a delay or reduction in the facility and consider payment protection until evidence is available.
Borrowing warning signs
- Large current maturities without committed replacement funding.
- Interest cost rises faster than debt without explanation.
- Overdrafts remain fully used rather than fluctuating seasonally.
- Debt funds losses, dividends or overdue creditors rather than productive investment.
- Covenant waivers or post-year-end refinancing are repeatedly required.
- Director or parent support is undocumented and repayable on demand.
- Secured assets have uncertain value or are essential to operations.
- Public accounts are old, abridged or overdue.
Documents to request for material exposure
- A current debt schedule reconciled to management accounts.
- Facility agreements, amendments and lender statements.
- Repayment dates, rates, fees, hedging and covenant calculations.
- Security documents and releases.
- Evidence of undrawn committed facilities.
- Subordination or support agreements for related-party finance.
- Current cash-flow forecasts and downside scenarios.
- Post-year-end refinancing and payment evidence.
Sources and editorial review
This guide was reviewed on 20 September 2026 using the creditor, loan, interest and security requirements in Schedule 3 of the Companies Act 2014, the Financial Reporting Council’s FRS 102 materials, and the CRO’s company charges guidance. It is general information, not accounting, banking, legal, investment or credit advice.