Loan for starting a cleaning company: your path to financing
23.07.2025
7
Minutes
Katrin Straub
Managing Director at nextsure
Do you dream of starting your own cleaning company, but financing seems like a hurdle? A solid plan and knowing where to turn can pave the way. This guide shows you how to convince banks and successfully apply for your start-up loan.
The topic in brief and concise terms
A detailed business plan is the most important prerequisite for obtaining a loan to start your cleaning company.
Combine traditional bank loans with government funding programmes such as KfW-StartGeld to optimise your financing.
Business liability insurance is essential to protect you and your company against claims for damages and is regarded by banks as a positive signal.
The business plan: your most important document for the loan application
A convincing business plan is the foundation for every meeting with the bank. It shows that you have thought through your venture in detail. When setting up a cleaning company, you do not need to provide any specific qualifications. Nevertheless, the bank expects a professional plan that covers at least the next three years. This plan should include a detailed market analysis and a clear description of your services. A common mistake is an imprecise definition of the target group. Define whether you are addressing private customers or commercial businesses with up to 20 employees. A well-structured plan increases your chances of receiving a loan by more than 50 per cent. This turns an idea into a financeable project that leads you to the next step: calculating the exact capital requirement.
Calculate capital requirements realistically: What does setting up cost?
A detailed breakdown of all costs helps prevent cash flow bottlenecks in the start-up phase. Plan not only for the one-off start-up costs, but also for the ongoing expenses for the first six months. For a solid basic setup, you should budget at least €5,000 to €15,000. Bear in mind that a reliable company van is often the largest single expense. Here is an example breakdown of the initial costs:
Professional cleaning equipment (industrial vacuum cleaners, steam cleaners): 2,500 Euro
Basic cleaning supplies: 500 Euro
Used small van: 8,000 Euro
Marketing (website, leaflets): 1,000 Euro
Business registration and advisory costs: 300 Euro
Many founders underestimate ongoing costs by up to 30 per cent. An accurate household budget for the loan application is therefore essential. With a clear cost breakdown, you can target the appropriate sources of financing.
Combine financing options cleverly: Use KfW loans and guarantees
Rarely is a start-up financed through just a single source. A mix of equity capital, bank loans and public funding is often the best solution. The Kreditanstalt für Wiederaufbau (KfW) offers special programmes for founders. The ERP start-up loan – StartGeld (067) finances up to 125,000 euros without any equity contribution. KfW covers 80 per cent of the credit risk, which makes it easier for your local bank to approve the loan. If collateral is lacking, guarantee banks step in and can secure up to 80 per cent of a loan amount. A start-up loan for young entrepreneurs becomes much more accessible through these instruments. The right combination of these building blocks depends heavily on your equity capital.
Equity capital and collateral: The foundation of your financing
Banks like to see equity of 15 to 20 per cent of the total investment. This signals your own confidence and commitment to the business idea. Equity includes not only cash, but also contributions in kind such as an existing vehicle. If you are seeking a loan for start-ups without equity capital, development loans are the best option. A life insurance policy can also serve as security for a loan. For founders with limited capital, there are special microloans often as low as €5,000. These are a good starting point for making initial investments. A solid financial foundation is complemented by cover against business risks.
Minimise risks: Essential insurance for your cleaning company
Comprehensive insurance cover is an important signal not only to you, but also to your lenders. Public liability insurance is the most important policy for any cleaning company. It covers damage caused by you or your employees to customers. The wrong cleaning product can cause damage of over €5,000 to an expensive floor. Without affordable public liability insurance, you are liable with all your assets. The following insurance policies are also crucial:
Contents insurance: Protects your expensive equipment against theft or destruction by fire and water.
Commercial legal expenses insurance: Helps with legal disputes with customers or employees.
Commercial motor insurance: Covers your fleet.
Banks often check whether basic risk management is in place. A well-thought-out insurance package is a sign of your professionalism. That means you are ideally equipped for the final step, the loan application.
The application process: step by step to success
A well-prepared application speeds up the credit decision by several weeks. With all the documents to hand, you appear professional and goal-oriented. A business loan for freelancers follows a clear process. Follow these five steps for a smooth application:
Finalise the business plan: Check all figures and forecasts for plausibility.
Compile the documents: These include the business plan, CV, Schufa report and quotations.
Arrange bank appointments: Speak with at least two to three different banks.
Present professionally: Practise your presentation and be prepared for critical questions.
Compare terms: Take the time to choose the best offer.
A complete submission can reduce processing time from six to three weeks. With the loan approval in hand, you can finally get started.
The path to your own company can be managed well with careful planning and protection. A solid financing plan and the right insurance policies protect you from unforeseen events and secure your long-term success. Have your insurance situation reviewed free of charge and receive concrete suggestions for optimisation.
More useful links
KfW offers detailed information on the ERP Start-up Loan StartGeld, an important funding product for start-ups and young companies.
The Federal Statistical Office (Destatis) provides press releases that may contain relevant data on business start-ups or economic development.
The start-up portal of the Federal Ministry for Economic Affairs and Climate Action offers comprehensive information and useful tools for prospective founders.
The German guarantee banks provide information about their role in securing loans for companies, particularly when collateral is lacking.
The Federal Employment Agency offers information on the start-up grant, which can make it easier for unemployed people to become self-employed.
The building services providers provide an industry report that may contain valuable market data and trends for the cleaning industry.
The Federal Ministry of Finance offers a brochure on tax matters from A to Z, which contains important information for company founders.
GEFMA (German Association for Facility Management) is the website of the German association for facility management, relevant for service providers in the building sector.
FAQ
What should be included in a business plan for a cleaning company?
A business plan should include your business idea, a market analysis, your target group (e.g. private or business customers), your pricing strategy and a detailed financial plan. The financial plan includes a capital requirements calculation, a profitability forecast for three years and a cash flow plan.
How do I register a cleaning company?
You must register your cleaning company with the relevant trade office. You will then receive a tax number from the tax office. Depending on the service (e.g. window cleaning), registration with the Chamber of Crafts may also be necessary.
Which legal structure is best for a cleaning company?
Most founders start as sole traders, as this is straightforward and cost-effective. If you are setting up a business with partners or want to limit liability, a civil law partnership (GbR) or an entrepreneurial company (UG) may also be suitable.
What happens if my loan application is declined?
Analyse the reasons for the rejection. Often, it is due to an unconvincing business plan or a lack of collateral. Revise your plan, explore alternative financing such as microloans, or seek support from a guarantee bank to make up for the missing collateral.
Why is contents insurance important for my cleaning business?
Contents insurance protects your business equipment such as machinery, cleaning supplies and office furnishings. It provides compensation for damage caused by fire, burst pipes, storm or theft following a break-in, thereby safeguarding the continuity of your business if your equipment is damaged.
Can I receive funding for start-up consultancy?
Yes, the costs of professional start-up consultancy that helps you create your business plan are eligible for funding. The federal government and the states offer grant programmes that often cover up to 80 per cent of consultancy costs.
