Credit for setting up a coworking space: Your path to successful financing
22 Jul 2025
5
Minutes
Katrin Straub
CEO at nextsure
Are you dreaming of your own coworking space, but funding seems like an insurmountable hurdle? Many entrepreneurs resort to using their own savings out of necessity, even if it's not their preferred option. This article shows you how to secure an appropriate loan for starting your coworking space and how to convince banks.
The topic in brief and concise terms
A detailed business plan with a robust financial section is the basic requirement for any loan application with banks and funding institutions such as the KfW.
The KfW start-up loan "StartGeld" offers an ideal financial foundation with up to 125,000 euros, low interest rates, and an 80% release from liability for the house bank.
Sufficient collateral (e.g. equity, guarantees, real estate) and a good credit rating improve the chances of obtaining a loan and lead to better interest conditions.
Cost Analysis: Laying the Financial Foundation for Your Coworking Dream
The initial investment for a coworking space varies greatly and can range from €50,000 to several hundred thousand euros. A detailed list of all initial costs is the first step towards a successful loan application. Commercial rent can vary depending on the location, from €15 to €30 per square meter per year. Additionally, a deposit of three months' rent is often required, which you can finance through a loan for the commercial deposit.
Equipment is another major expense that can quickly exceed €20,000. Allocate at least €500 per workspace for a desk and chair. Ongoing costs such as salaries, marketing, and insurance must also be included in the capital requirement for the first six months. This detailed planning forms the basis for the next step: selecting the appropriate sources of financing.
Financing options: Finding the right mix of loans for your project
There are various ways to finance your coworking space. State development banks are often the first point of contact. The Kreditanstalt für Wiederaufbau (KfW) offers attractive programmes specifically for founders. The founders' loan for young entrepreneurs is an important option here.
One of the best-known funding opportunities is the “ERP-Gründerkredit – StartGeld” from the KfW. With this programme, you can apply for up to 125,000 euros for investments and working capital. The benefits are significant: you benefit from low interest rates, up to two years without repayments, and 80% liability release for your bank. This liability release greatly reduces the risk for the bank and increases your chances of approval.
In addition to KfW, there are further options:
Traditional bank loans from savings banks or cooperative banks.
Microcredits for smaller investments up to 25,000 euros.
Funding programmes from individual federal states, which often include grants.
Equity capital from business angels or venture capital.
Our expert tip: Combine different financing components to reduce dependence on a single source. A solid business plan is the central document to convince all potential investors.
Business plan: The central document for convincing lenders
A comprehensive business plan is your ticket to the loan. Banks and funding institutions like KfW scrutinise this document in great detail. It must include a realistic assessment of market opportunities and a plausible financial plan. A key component is the profitability forecast, which shows when your co-working space will generate profits, often expected within the first three years.
The financial section must include a detailed revenue and cost plan for at least three to five years. Also plan for the financing of your digital presence, for example through a loan for a professional website. Liquidity planning is particularly important and is explicitly required by KfW for financing needs of €25,000 or more. Demonstrate that you are financially stable at all times. With a convincing plan, you strengthen your negotiating position and prove your entrepreneurial foresight.
Securities & Creditworthiness: Significantly Strengthen Your Negotiating Position
Banks require collateral to minimise their credit default risk, as only one-third of start-ups survive the first three years. The more collateral you provide, the better your terms. Various assets can be considered as collateral for a business loan for freelancers.
The following collaterals are typically accepted by banks:
Real Estate: A mortgage on private or business property is highly valuable collateral.
Bank Deposits and Securities: Equity of 15 to 20 per cent of the loan amount is often expected.
Endowment Life Insurance: The surrender value can serve as collateral.
Guarantees: If private collateral is lacking, a guarantee bank can step in and cover up to 80 per cent of the credit risk.
Transfer of Ownership as Security: In this case, assets such as office furniture or vehicles are transferred to the bank but remain in your possession.
Our Expert Tip: Good creditworthiness can reduce the interest rate by up to one percentage point. Therefore, ensure you obtain a positive credit report early on. The right collateral is often the key to success, but safeguarding ongoing operations should not be neglected.
Risk Management: Essential Insurances for Ongoing Operations
An approved loan is just the beginning; protecting your new business is equally important. An employer's liability insurance is the absolute foundation and covers third-party personal injury and property damage. The costs for this start at around 250 Euros per year. Such an affordable employer’s liability insurance is a small investment with a big impact.
Additionally, contents insurance (often referred to as inventory insurance) is essential. It protects your expensive equipment against damage from fire, water, or burglary. Consider that the IT infrastructure alone can quickly reach a value of over 10,000 Euros. A loss of rent insurance can also protect you if your premises become temporarily unusable due to damage. As a digital insurance portal, nextsure supports you in finding the right and affordable insurance solutions for your project. With the right protection, you can focus on the final step: the loan application.
Application & Payout: Efficiently leading the process to success
The loan application, especially for promotional loans from KfW, is always submitted through your house bank. It acts as an intermediary and reviews your project before forwarding it to the promotional bank. The processing time can range from four to eight weeks. A careful preparation of all documents can shorten this process by up to two weeks.
After approval, you will receive a loan agreement from your house bank. For KfW loans, you generally have nine to twelve months to draw down the loan amount in full or in part. Note that after a certain period, commitment interest of around 0.25 percent per month may apply. If your financial conditions change, a debt restructuring option for the self-employed may be an option for reducing costs later.
Request your individual risk analysis now: Get your insurance situation reviewed for free and receive specific optimization suggestions.
More useful links
The Pacific Rim Real Estate Society (PRRES) offers a detailed analysis of the coworking market in Germany in the form of a PDF document.
Statista provides statistics on coworking spaces in German cities.
The Bertelsmann Stiftung sheds light on the topic of coworking in rural areas in a PDF document.
FAQ
What documents do I need for the loan application?
You need a comprehensive business plan, a resume, detailed financial planning (capital requirements, revenue, profitability, and liquidity plan), a credit report, tax assessments from the past years, and proof of existing equity and collateral.
How long does it take from the application to the disbursement of the loan?
The process usually takes between four and eight weeks. Good preparation and complete documentation can significantly shorten the processing time.
What is the advantage of a KfW loan compared to a regular bank loan?
KfW loans often offer more favourable interest rates, long terms, grace periods without repayments, and a liability release for your commercial bank. This facilitates lending as the risk for the bank decreases.
Do I have to be personally liable for the loan?
Yes, for most startup loans, especially if you are setting up as a sole proprietorship or a partnership (GbR), you are personally liable with your private assets. Even when founding a GmbH, a personal guarantee from the managing director is often required.
Which insurance is most important for a coworking space?
Business liability insurance is absolutely essential as it covers damages to third parties (e.g., a customer trips over a cable). Closely followed by contents insurance, which protects your valuable inventory.
Where can I apply for a KfW promotional loan?
KfW loans are not applied for directly through KfW but always via a financing partner, usually your local bank (e.g. Sparkasse, Volksbank or a private bank). After reviewing, this partner forwards the application to KfW.
