Loan to start a catering service: your 5-step financing plan
20.05.2025
3
Minutes
Katrin Straub
Managing Director at nextsure
Do you dream of creating culinary experiences with your own catering service? This dream requires a solid financial foundation. We’ll show you how, with the right preparation, you can successfully apply for a loan to set up your catering service.
The topic in brief and concise terms
A detailed business plan with solid financial planning is the essential prerequisite for successful lending.
Use public funding programmes such as the KfW start-up loan, which offers banks a liability waiver and often allows initial years with no repayments.
A comprehensive insurance package, especially public liability and business interruption insurance, minimises risks and strengthens your negotiating position with the bank.
Step 1: Lay the foundations with a precise business plan
A detailed business plan is the most important prerequisite for obtaining a loan to set up a catering service. It serves not only as a roadmap for you, but also convinces banks and funding institutions of the viability of your business idea. A key component is the financial planning, which consists of a capital requirements plan, financing plan, sales plan and cost plan. Banks scrutinise the profitability forecast particularly closely, which shows when your service will start generating profits. A careful private household budget additionally underpins your financial reliability. The Chamber of Industry and Commerce often offers certified courses that provide you with the necessary knowledge to prepare one. A complete plan is half the battle on the way to securing a financing commitment.
Step 2: Calculate capital requirements realistically
Before applying for a loan, you must precisely calculate your capital requirements. The costs of setting up a catering service can quickly exceed €50,000, depending on your concept. Take into account all one-off and ongoing costs for the first few years. These include not only the expenses incurred after opening, but also the costs of the preparation phase. A precise breakdown is crucial for the amount of the loan.
Typical cost items include:
Professional kitchen equipment (cookers, refrigerators, etc.)
A suitable transport vehicle, possibly refrigerated
Initial equipment of crockery, cutlery and table linen
Costs for business registration and licences
Marketing expenses for the start-up phase (website, flyers)
Purchasing goods for the first orders
Ongoing operating supplies and personnel costs for at least three months
Always allow a financial buffer of at least fifteen per cent for unforeseen expenses. A detailed overview of the finances is also crucial when buying a food truck. This precise calculation shows the bank that you have thought through your project.
Step 3: Identify suitable sources of finance
For financing your catering service, various options are available to you. A traditional bank loan is one option, but only around one per cent of founders use it exclusively. A very good alternative is public funding programmes, above all the loans from the Kreditanstalt für Wiederaufbau (KfW). The „ERP Start-up Loan – StartGeld“ offers up to EUR 125,000 with an 80 per cent liability exemption for your principal bank, which reduces the risk for the lending institution. No equity capital is also required for this programme. The major advantage of KfW development loans is the often available initial grace years, during which you only pay interest. Our expert tip: combine different financing building blocks. A start-up loan for young entrepreneurs can, for example, be supplemented by the Microcredit Fund Germany for smaller amounts up to EUR 20,000. Reviewing these options is an important step before talking to the bank.
Step 4: Prepare collateral and risk management
Banks only grant loans when the risk of default is calculable for them. That is why you need to show how you minimise the risks associated with setting up your business. Alongside commercial and professional qualifications, security is a key issue. If you set up without equity capital, other factors become more important. A well thought-out insurance concept is a strong argument here. It signals to the bank that you have considered unforeseen events that could jeopardise business operations and, in turn, loan repayment. For example, business interruption insurance can cover ongoing costs in the event of an officially ordered closure due to a salmonella infection. This protects not only you, but also the bank. Presenting an insurance concept can significantly improve your negotiating position.
Step 5: Demonstrate essential insurance cover
Comprehensive insurance cover is essential for a catering service and is often assessed by lenders as a criterion. It protects your business from financial consequences resulting from unforeseen damage. The following types of insurance are essential when getting started:
Public liability insurance: This is the most important policy, as it covers personal injury, property damage and resulting financial losses caused by you or your employees. An affordable public liability cover is the absolute basic cover.
Business contents insurance: It protects your inventory, i.e. kitchen equipment, furnishings and goods, against damage caused by fire, burst pipes or burglary.
Transit insurance: For a catering service, this policy is crucial, as it insures your goods and equipment during transport to the customer.
Business interruption or closure insurance: This kicks in if your operation comes to a standstill, for example due to fire damage or an official order, and covers ongoing costs and lost profits.
Our expert tip: Have a tailored insurance package put together. Business interruption insurance is often cheaper when combined with contents insurance. With proof of this cover, you show the bank that you plan responsibly.
Conclusion: Achieving success through strategic planning
Applying for a loan to set up a catering service is not rocket science, but the result of careful and strategic planning. A convincing business plan, a realistic financial forecast and a coherent risk management concept are the three pillars of your success. By taking advantage of the right funding programmes and insuring your business properly from the outset, you create a solid foundation that not only impresses lenders, but also lays the groundwork for a successful future. A business loan for freelancers can be a flexible solution here. Take your future into your own hands.
Request your personalised risk analysis now: Have your insurance situation checked free of charge and receive specific recommendations for improvement.
More useful links
German Hotel and Restaurant Association (DEHOGA) offers comprehensive figures and facts about the hospitality industry.
FAQ
What should be included in the financial section of a business plan for a catering service?
The financial section must contain a capital requirements plan, a financing plan, a revenue and cost plan, as well as a profitability and liquidity forecast. This shows the bank that your business model is financially well thought out and viable.
Which insurance is most important for a catering provider?
Public liability insurance is absolutely essential. It covers damage caused by you or your employees at customers’ premises, for example through spoiled food or damaged property.
What is the advantage of a KfW loan compared with a standard bank loan?
KfW loans often offer lower interest rates, long terms and repayment-free initial years. In addition, KfW assumes a large portion of the credit risk (indemnification), which makes it more attractive for the main bank to approve the loan.
How detailed does my cost planning need to be?
Very detailed. You should list all one-off start-up costs (e.g. kitchen equipment, vehicle) and all ongoing costs for at least the first twelve months (e.g. rent, staff, cost of goods sold, insurance). You should also plan a buffer of at least fifteen per cent for unforeseen expenses.
Why is transit insurance so important for caterers?
As your business model is based on transporting food and equipment, the risk of damage during transit is high. Cargo insurance protects you from the financial consequences if, for example, an accident renders the entire delivery unusable or expensive equipment is damaged.
