Start-up loan without equity: Online financing in 4 steps
5 Jul 2025
6
Minutes
Katrin Straub
CEO at nextsure
Do you have a brilliant business idea but lack the necessary start-up capital? This is one of the biggest hurdles for nine out of ten entrepreneurs. Find out how to apply for a start-up loan online without your own capital and make your vision a reality.
The topic in brief and concise terms
Government support programs from KfW are the most important way to obtain a start-up loan without equity, as they reduce the risk for the banks.
A comprehensive and convincing business plan with a detailed financial plan is the critical document for obtaining loan approval when there is no equity available.
Guarantee banks can serve as additional security and significantly increase the chances of obtaining a loan by guaranteeing a large portion of the loan.
The Situation: Why Lack of Equity Poses a Risk for Banks
Banks evaluate loan applications from founders primarily based on default risk. Without equity, there is a lack of a financial buffer that could cushion losses during the start-up phase. For the bank, this means a risk of up to one hundred percent. A spotless SCHUFA score is indeed a basic requirement but does not replace collateral. Missing capital signals a higher risk to the bank and often leads to the rejection of about 70 percent of applications. State-sponsored programmes address this exactly, aiming to minimise this risk and facilitate new businesses. They are the key to overcoming the traditional barriers posed by banks.
Government subsidised loans: The KfW as the most important partner for start-ups
The Kreditanstalt für Wiederaufbau (KfW) is the first point of contact for entrepreneurs in Germany. Programmes such as the "ERP-Gründerkredit – StartGeld" are specifically designed for founders without their own capital. You can apply for up to 125,000 euros here for investments and ongoing costs. The decisive advantage lies in the liability release: the KfW assumes up to 80 percent of the credit risk from your local bank. This risk minimisation makes your credit inquiry significantly more attractive to the local bank. Securing a start-up loan for young entrepreneurs thus becomes considerably easier. The application is always made via a local bank, which forwards the application to the KfW.
The business plan: Your central document for lending
If equity is lacking, the business plan becomes the most important tool to build trust. It must demonstrate the viability of your business idea comprehensively. A convincing business plan contains more than just a good idea; it needs solid numbers. The following components are crucial for the bank:
Capital requirements plan: Detailed listing of all startup costs and investments for the first three years.
Financing plan: Show how the capital requirement is to be covered, including the loan applied for.
Profitability forecast: A realistic estimate of revenues and costs for the first three business years.
Liquidity plan: Monthly planning of inflows and outflows to ensure solvency.
CV of the founder: Evidence of your technical and commercial qualifications.
A detailed financial plan shows the bank that you have thought through your project thoroughly. With a solid plan, you can also successfully apply for a loan to set up an online shop. This document is the basis for the trust of financing partners.
Guarantee Banks: An Additional Security for Your Loan
If the KfW guarantee does not suffice, the guarantee banks of the federal states come into play. These institutions do not provide loans themselves but guarantee the loan amount to your main bank. A guarantee bank can secure up to 80 percent of the credit volume and almost completely eliminate the risk for the main bank. The application for a guarantee is usually made directly through the main bank, which forwards all documents to the relevant guarantee bank. This additional security is often the decisive factor for a loan approval. The combination of a KfW loan and a guarantee is a very robust financing strategy for founders. This makes a loan for a craftsman's enterprise tangible.
Alternative financing options for founders without equity
In addition to traditional promotional loans, there are other options to secure start-up capital. These are often suitable for smaller projects or as a supplement. The Microcredit Fund Germany grants loans of up to 25,000 euros, often also to founders who have no chance with banks. Applications are made through accredited microfinance institutions. Another option is the start-up subsidy from the Employment Agency for entrepreneurs coming from unemployment. Crowd-lending platforms also offer the possibility to collect money from many private investors, often with interest rates between four and eight percent. These alternatives can fill an important gap in the financing mix. They are particularly relevant when seeking a business loan for freelancers. A thorough review of the terms is essential.
Your path to a startup loan: A step-by-step guide
The process of applying for a loan for start-ups without capital online follows a clear structure. With the right preparation, you can increase your chances of success by more than 50 percent. Stick to the following order:
Create a business plan: Develop your business idea thoroughly, including a detailed financial plan.
Seek advice: Use free start-up consultations to have your business plan reviewed by experts.
Contact your bank: Engage in discussions with your bank to convince them of your project and to submit the KfW application.
Submit documents: Submit the complete application along with all required documents to your bank.
Review guarantee: If the bank requires additional securities, proactively suggest the option of a guarantee bank.
A proactive and well-prepared approach is the key to success. This structured process also helps with specific projects such as a part-time start-up. This way, you always keep track of the next steps.
Expert tip: Avoid common mistakes when applying
Many founders fail due to avoidable mistakes that can be easily circumvented. A common problem is an incomplete or overly optimistic financial plan. Always plan for a buffer of at least 20 percent for unforeseen expenses. Another mistake is a lack of preparation for the bank meeting. You must know your numbers by heart and be able to confidently explain every position in the business plan. Our expert tip: Be sure to apply for the loan before the official business registration, as many funding programs exclude applications made after the establishment. Even those seeking a loan despite negative SCHUFA must impress with perfect preparation. This attention to detail often determines approval or rejection.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete optimization suggestions.
More useful links
KfW offers detailed information on the ERP Start-Up Loan – Start-Up Money (067), an essential funding product for start-ups.
KfW provides information on the ERP Funding Loan for Start-Ups and Succession Planning (077).
The Federal Ministry for Economic Affairs and Climate Action offers a comprehensive dossier on the topic of business start-ups.
The Start-up Portal of the Federal Ministry for Economic Affairs and Climate Action is the official portal for entrepreneurs.
The Federal Ministry for Economic Affairs and Climate Action provides an overview of funding instruments for start-up and growth financing as a PDF document.
The Sparkasse offers a guide on "Starting a business without capital".
The Federal Statistical Office (Destatis) provides information on business demographics.
Wikipedia offers an informative article on the ERP Special Fund.
The Federal Employment Agency provides information on the start-up grant for entrepreneurs.
FAQ
Is it really possible to get a loan for start-up founders without any equity?
Yes, that is possible. Programs like the "ERP-Gründerkredit – StartGeld" from KfW are specifically designed so that no equity capital is required. The key to success is a compelling business plan and the willingness of the bank to support the development loan.
What role does the SCHUFA play in a founder loan without equity?
A positive SCHUFA report is a fundamental requirement. Negative entries almost always lead to rejection, as they indicate poor payment reliability. Even without equity, your personal creditworthiness must be impeccable.
How long does it take to apply for a start-up loan?
The process can take several weeks to three months from creating the business plan to disbursement. Good preparation and swift communication with the bank can significantly speed up the process.
Can I also use the start-up loan for a part-time self-employment?
Yes, many KfW programmes, including the ERP Start-up Loan, can also be applied for part-time start-ups. The condition is that the project is intended to become a full-time business in the long term.
What happens if my loan application is rejected?
Ask for the specific reasons for the rejection. Often, it’s due to the business plan, which you can then revise. Alternatively, you might consider approaching another bank or exploring alternative financing options such as microloans or crowdlending.
What costs are covered by a start-up loan?
A startup loan can finance both investments (e.g. machinery, vehicles, office equipment) and working capital (e.g. rent, personnel costs, marketing, inventory). The exact purpose is defined in the business plan.
