Loan for starting a part-time self-employed business: Your path to financing
17.06.2025
9
Minutes
Katrin Straub
Managing Director at nextsure
Do you dream of turning your passion into a career, but financing is holding you back? A loan to start a part-time self-employed business could be the solution. Find out how to convince banks and which funding options can make getting started easier.
The topic in brief and concise terms
A detailed business plan is the most important prerequisite for successfully applying for a loan.
The KfW ERP Start-up Loan – StartGeld is an excellent funding option for part-time founders and requires no equity capital.
Guarantee banks can make up for a lack of collateral and thus significantly increase the chances of getting a bank loan.
Realistically calculate the financing required to get started
Every business start-up begins with a precise cost breakdown. List all one-off start-up costs such as licences or the purchase of equipment. Also take into account the ongoing costs for the first six months. An online shop, for example, may have start-up costs of €2,000 for the build and €300 per month for marketing. Accurate calculation prevents additional financing requests and shows the bank your professionalism. This detailed planning is the first step towards a convincing financing application. This lays the foundation for the further discussions with potential lenders.
The business plan: your key argument for loan approval
A compelling business plan is essential for securing a loan. It not only documents your business idea, but also demonstrates its economic viability. Even if you only need 10,000 euros, a solid plan is crucial. Banks carefully assess your project before granting a start-up loan. The following points must not be missing:
Business idea and founder profile
Market and competitive analysis
Marketing and sales strategy
Legal structure and organisation
Financial plan with revenue and profitability forecast for three years
Liquidity planning and capital requirements analysis
A well-structured financial section shows that you have your figures under control. A detailed plan is therefore the most important prerequisite for a successful search for financing.
Making use of funding: the KfW start-up loan as a top option
Government funding programmes are an excellent way to finance your project. The KfW ERP Start-up Loan – StartGeld is specifically designed for founders starting a business on a part-time basis. You can apply for up to 125,000 euros for investments and ongoing costs. A major advantage is that KfW takes on eighty per cent of the default risk for the local bank, which makes lending considerably easier. Since the start of 2025, a transition to full-time self-employment is no longer mandatory. This loan requires no equity capital, which makes it particularly attractive for founders. With these funds, you can often get started more easily than with a loan without equity capital from a conventional bank. Applications are always submitted via your local bank, which forwards the application to KfW.
Traditional bank loans and the role of collateral
A classic instalment loan from your local bank can also be an option. However, banks require collateral and a positive SCHUFA report for a business loan. For example, life insurance policies or property can serve as collateral. If these are lacking, obtaining a loan becomes difficult. This is where guarantee banks come in. They can guarantee up to eighty per cent of the loan amount, thereby minimising the risk for the local bank. A guarantee can open the crucial door to the capital you need. Remember that even with negative SCHUFA entries, specialist options exist, such as a loan for the self-employed despite negative Schufa. Open communication about your financial situation is always the best approach.
Do not neglect legal requirements and insurance
Before you get started, there are a few formal hurdles to clear. Inform your employer about your plans to avoid contractual conflicts. Register your business with the relevant trade office; freelancers apply for a tax number directly from the tax office. Check the small business scheme, which exempts you from VAT up to an annual turnover of 22,000 euros. Also inform your health insurance provider, as your contribution may change. Correct registration from the outset protects you from later problems. One often overlooked aspect is personal protection, such as disability insurance for the self-employed. This protects your income if you are no longer able to work for health reasons.
Actively manage the risks of self-employment
Starting a business always involves risks, but these can be reduced in a targeted way. Business liability insurance is essential for many activities. It protects you against the financial consequences of damage you cause to third parties, with cover limits often exceeding three million euros. For creative professions, financial loss liability insurance can also be worthwhile. Remember your own health too. Suitable affordable health insurance for the self-employed ensures your medical care. A well thought-out insurance concept is not a cost factor, but an investment in the stability of your business. This protects not only your business, but also your private livelihood.
Request an individual risk analysis now: have your insurance situation reviewed free of charge and receive specific suggestions for optimisation.
More useful links
BMWK start-up portal offers information on funding for a part-time business start-up.
IHK Munich provides a guide to part-time self-employment.
Gründerplattform provides information and business ideas for part-time self-employment.
BMWK start-up portal provides information on applying for the start-up grant for part-time self-employment.
Wikipedia offers an article on the topic of side business.
FAQ
What are the first steps to apply for a loan for part-time self-employment?
First, create a detailed business plan including a financial plan. Calculate your capital requirements realistically. Then speak to your bank and find out about development loans such as KfW-StartGeld.
How important is equity capital for a start-up loan?
Equity capital increases your chances and improves the terms, but is not always essential. The KfW ERP Start-up Loan – StartGeld, for example, can be applied for without equity capital, which is a major relief for many founders.
What happens if I don’t have any collateral for the loan?
If you have no collateral or only insufficient collateral, you can apply for a default guarantee from a guarantee bank in your federal state. This takes on a large share of the risk for the lending bank and thus improves your chances of securing finance.
Which insurance policies are important for part-time self-employment?
Public liability insurance is essential to protect yourself against third-party claims for damages. Depending on your line of work, professional indemnity insurance may also be necessary. You should also protect your own earning capacity with income protection insurance.
Can I apply for the KfW loan directly at KfW?
No, KfW promotional loans are not applied for directly from KfW. You always submit the application to a finance partner of your choice, usually your house bank. This reviews the application and forwards it to KfW.
Does a side business have to become a full-time business?
This used to be a requirement for many funding programmes. Since an adjustment in early 2025, however, it has been possible with the ERP Start-up Loan – StartGeld to remain self-employed on a permanent part-time basis, without any intention of switching to full-time self-employment.
