Loan for setting up a coworking space: your path to successful financing
22.07.2025
3
Minutes
Katrin Straub
Managing Director at nextsure
Do you dream of your own coworking space, but financing seems like an insurmountable hurdle? Many founders end up using their own savings out of necessity, even though they would prefer not to. This article shows you how to take out a suitable loan to set up your coworking space and convince banks.
The topic in brief and concise terms
A detailed business plan with a solid financial section is the essential prerequisite for any loan application to banks and funding institutions such as KfW.
The KfW start-up loan “StartGeld” offers an ideal financing basis, with up to €125,000, low interest rates and an 80% indemnity for the main bank.
Sufficient collateral (e.g. equity, guarantees, property) and good creditworthiness improve the chances of securing a loan and lead to better interest rates.
Cost analysis: laying the financial foundation for your coworking dream
The initial investment for a coworking space varies significantly and can range from €50,000 to several hundred thousand euros. A detailed list of all start-up costs is the first step towards a successful loan application. Commercial rent can, depending on location, amount to between €15 and €30 per square metre per year. This is often accompanied by three months’ rent as a deposit, which you can finance with a loan for the commercial deposit.
Furnishings are another major item and can quickly exceed €20,000. Plan for at least €500 per workstation for a desk and chair. Ongoing costs such as salaries, marketing and insurance must also be factored into the capital requirement for the first six months. This detailed planning is the basis for the next step: selecting the appropriate sources of financing.
Financing options: Finding the right loan mix for your project
Various financing options are available for your coworking space. Public development banks are often the first point of contact. Kreditanstalt für Wiederaufbau (KfW) offers attractive programmes specifically for founders. The start-up loan for young entrepreneurs is an important option here.
One of the best-known funding schemes is KfW’s “ERP start-up loan – StartGeld”. With this programme, you can apply for up to €125,000 for investments and working capital. The advantages are significant: you benefit from low interest rates, up to two initial repayment-free years, and an 80% exemption from liability for your local bank. This exemption from liability considerably reduces the bank’s risk and increases your chances of approval.
In addition to KfW, there are other options:
Traditional bank loans from savings banks or cooperative banks.
Microloans for smaller investments of up to €25,000.
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 key document for convincing all potential lenders.
Business plan: The key document for convincing lenders
A comprehensive business plan is your ticket to securing a loan. Banks and development institutions such as KfW examine this document in painstaking detail. It must contain a realistic assessment of market opportunities and a plausible financial plan. A key component is the profitability forecast, which shows when your coworking space will start generating profits, often expected within the first three years.
The financial section must include detailed revenue and cost planning for at least three to five years. Also plan for financing your digital presence, for example through a loan for a professional website. Cash flow planning is particularly important and is explicitly required by KfW for financing needs of €25,000 or more. Show that you can meet your payment obligations at all times. With a convincing plan, you strengthen your negotiating position and demonstrate your entrepreneurial foresight.
Security and creditworthiness: significantly strengthen your negotiating position
Banks require collateral to minimise their credit default risk, because only one third of start-ups survive the first three years. The more collateral you can offer, the better your terms. Various assets can be used as collateral for a business loan for freelancers.
The following forms of collateral are usually accepted by banks:
Property: A charge over private or business real estate is a very valuable form of security.
Bank deposits and securities: Equity of 15 to 20 per cent of the loan amount is often expected.
Endowment life insurance policies: The surrender value can serve as collateral.
Guarantees: If private collateral is lacking, a guarantee bank can step in and assume up to 80 per cent of the credit risk.
Transfer of ownership as security: 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. So take care of a positive Schufa report at an early stage. The right collateral is often the key to success, but the protection of day-to-day operations should not be neglected either.
Risk management: Essential insurance for ongoing operations
An approved loan is only the beginning; protecting your new business is just as important. Public liability insurance is the absolute foundation and covers third-party personal injury and property damage. Costs start at around €250 per year. Such affordable public liability insurance is a small investment with a big impact.
In addition, contents insurance (often also referred to as inventory insurance) is essential. It protects your expensive equipment against damage caused by fire, water or burglary. Bear in mind that IT infrastructure alone can quickly reach a value of over €10,000. Loss of rent insurance can also protect you if your premises are temporarily unusable due to damage. As a digital insurance portal, nextsure helps you find the right and affordable protection solutions for your project. With the right cover, you can focus on the final step: the loan application.
Application & disbursement: Successfully guiding the process efficiently
The loan application, particularly for KfW promotional loans, is always submitted through your local bank. This acts as an intermediary and reviews your project before forwarding it to the development bank. Processing time can be between four and eight weeks. Careful preparation of all documents can shorten this process by up to two weeks.
After approval, you will receive a loan agreement from your local bank. For KfW loans, you usually have nine to twelve months to draw down the loan amount in full or in part. Please note that after a certain period, commitment interest of around 0.25 per cent per month may apply. If your financial circumstances change, refinancing for the self-employed may later be an option for reducing costs.
Request your personalised risk analysis now: Have your insurance situation checked free of charge and receive specific recommendations for improvement.
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 major German cities.
The Bertelsmann Stiftung explores the topic of coworking in rural areas in a PDF document.
FAQ
What documents do I need for the loan application?
You need a complete business plan, a CV, detailed financial planning (capital requirements, sales, profitability and liquidity plans), a Schufa report, tax assessments for the last few years and evidence 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 with a standard bank loan?
KfW loans often offer lower interest rates, long terms, repayment-free initial years and a liability exemption for your bank. This makes lending easier, as the risk for the bank decreases.
Will I be personally liable for the loan with my private assets?
Yes, for most start-up loans, especially if you are setting up as a sole trader or a GbR, you are personally liable without limitation with your private assets. Even when setting up a GmbH, a personal guarantee from the managing director is often required.
Which insurance is most important for a coworking space?
Public liability insurance is absolutely essential, as it steps in when third parties suffer damage (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 from KfW, but always through a financing partner, usually your bank (e.g. Sparkasse, Volksbank or a private bank). After reviewing the application, this partner forwards it to KfW.
