A foreign-currency loan may offer a lower interest rate than an alternative lira offer, but its cost also depends on exchange rates, repayment timing and the currency of revenue. A business funding a long-term project in Türkiye needs to compare those terms before signing.
Case: equipment pays back after the loan is due
Case: a manufacturer finances imported equipment with a foreign-currency loan. Sales are planned in lira, while principal falls due before the project reaches its planned utilisation. Even if the equipment raises output, the company needs foreign currency for interest and repayments before the investment pays back.
Build a monthly calendar by currency: loan payments, purchasing, taxes, payroll and customer receipts. Show confirmed balances separately from expected sales and an assumed loan renewal. Revenue in one currency does not automatically cover obligations in another; the timing of receipts matters too.
Compare bank offers on the same basis
- Total financing cost: interest, fees, collateral and associated expenses.
- Interest and principal schedule, grace period and any large final payment.
- Currency of receipts and obligations in each period, and potential conversion costs or restrictions.
- Terms for early repayment, rate changes and financial covenants.
Compare the same amount and term. A lower interest rate alone does not show total cost if currency movements raise payments in lira. Without assuming a specific exchange-rate forecast, run several scenarios and identify the first month when the cash balance could fall short.
Before committing
Test delayed launch, lower utilisation and late customer payment. Then assess different financing maturities, owner funding, phased purchasing or revised terms with the bank. Credit availability and currency-risk tools depend on the company and contract; confirm them with the bank and advisers.
Review operations too: what output increase is actually needed, who will maintain the equipment, and which fixed costs remain at low utilisation. A higher production plan needs confirmed demand and sufficient cash to fulfil it.
Sources
Reviewed on 28 October 2026: CBRT: foreign-currency assets and liabilities of non-financial companies; OECD Economic Survey: Türkiye 2025. Aggregate indicators do not establish a particular company’s currency risk; that depends on its contracts and receipts.