---
title: "What German Banks Really Want to See in a Padel Hall Business Plan"
slug: padel-business-plan-bank-requirements
language: en
url_path: /en/blog/padel-business-plan-bank-requirements
meta_description: "DSCR 1.2–1.5x, KfW programs, covenant compliance: what banks expect from a padel hall business plan in Germany, from people who've reviewed them."
cornerstone: C3
---

# What German Banks Really Want to See in a Padel Hall Business Plan

Most rejected financing applications for padel halls don't fail because the project is bad. They fail because the business plan leaves questions open that every commercial loan officer will ask — questions that are entirely answerable with proper preparation. If you're walking into a first meeting with a Volksbank, Sparkasse, or any German regional bank, you need to know what's expected on the other side of the table. This article covers it.

---

## The Number That Determines Everything: DSCR

Before we get to document structure, a brief detour into how banks think. Banks don't lend out of enthusiasm for padel's growth trajectory. They model default risk. The central instrument is the **Debt Service Coverage Ratio (DSCR)** — in German: *Kapitaldienstdeckungsgrad (KDDB)*.

The formula:

```
DSCR = operating cash flow ÷ annual debt service (interest + principal)
```

The standard in German SME lending: **1.2 to 1.5x**. For every €1 of debt service, the project needs to generate €1.20–1.50 of cash flow. Below 1.2x, you'll either face rejection or be asked to inject more equity. A plan that doesn't make the DSCR calculation transparent forces the loan officer to do the math himself — and they'll be more conservative than you.

The other hard constraint is **equity contribution** (*Eigenkapitalquote*): banks typically expect the founder to put in 20–30% of total investment. KfW subsidy programs can partly substitute for equity (more on that below), but they never replace it entirely. Coming to the table with 10% equity rarely works.

---

## The 13 Sections of a German Padel Hall Business Plan

German banks work from a mental checklist. Structure your plan so each item gets checked off clearly, and you reduce friction in the credit decision considerably. Here's the full framework, based on the KfW *Gründerkredit* standard:

### 1. Founder and Management Profile (*Gründer- und Managementprofil*)

Who are you, and why are you the right person for this project? Banks finance people as much as they finance concepts. Relevant experience in sports operations, hospitality, or facility management carries real weight. Gaps in the management team — say, nobody with commercial or P&L experience — are red flags that need to be addressed directly, whether through a qualified co-founder, an experienced external advisor, or a committed board member.

### 2. Project Description (*Vorhabensbeschreibung*)

Specific and concrete: Where exactly is the facility? How many courts — indoor, outdoor, or both? Target opening date? Who is the target customer — recreational players, members, competitive players? Vague descriptions ("a modern padel facility in greater Munich") signal that planning hasn't progressed far enough.

### 3. Market Analysis (*Marktanalyse*)

This is where many business plans fail — not because the section is missing, but because it's generic. "Padel is the fastest-growing sport in Europe" is not a financial argument. What matters: How many padel facilities exist within a 15-minute drive? What are their utilization rates? Is there unmet demand, or is the local market already served? The analysis must be local and specific. (More on how to research this in our location guide.)

### 4. Service Offering (*Leistungsangebot*)

What exactly are you selling, at what prices? Court rental pricing (peak vs. off-peak, hourly vs. subscription), coaching programs, food and beverage, memberships, merchandise. Every revenue stream needs a price point and a volume assumption, both of which need to be traceable back to comparable benchmarks.

### 5. Marketing Concept (*Marketingkonzept*)

How will courts get filled? A credible pre-opening plan (pre-sale memberships, launch discounts, local partnerships with sports clubs) and an ongoing marketing budget are not optional. Banks understand that utilization doesn't happen by itself. A plan without a marketing budget is a plan that won't hit its revenue projections.

### 6. Operating Concept (*Betriebskonzept*)

Staffing plan (how many FTE, what roles), operating hours, booking system, maintenance schedule. Payroll is typically the largest recurring cost line — it needs to be complete and defensible.

### 7. CAPEX Investment Plan (*Investitionsplan*)

Banks want line items, not totals. Construction costs broken down by trade, court surfacing, LED lighting (padel lighting is energy-intensive and expensive), booking system, locker room and lounge fit-out, ancillary construction costs, notary and permitting fees. Ideally supported by contractor quotes. "Total construction: €600k" is not an investment plan.

### 8. Use of Funds (*Mittelverwendungsplan*)

Where does every euro of the loan go? This bridges the gap between the CAPEX plan and the financing structure, mapping loan proceeds to specific investment line items.

### 9. Financing Structure (*Finanzierungsplan*)

How is the project financed? Equity (amount, source), KfW loans, bank loans, shareholder loans. And critically: which KfW programs have been evaluated? Failing to mention KfW signals you haven't done your homework.

### 10. P&L Projection (*Rentabilitätsvorschau*)

A five-year projection, with monthly detail for Year 1. Revenue assumptions must be explicitly derived: number of courts × bookable hours × utilization rate × price. Separately for each revenue stream. Cost lines must be complete: rent, payroll, energy, insurance, marketing, maintenance reserve, depreciation, interest, principal repayment.

### 11. Cash Flow Plan (*Liquiditätsplanung*)

Month-by-month cash flow for Year 1, quarterly for Years 2–3. Special attention to the pre-opening period: when do lease obligations start running? When does revenue begin? The cash trough before opening is often the risk that concerns banks most.

### 12. Risk Analysis (*Risikoanalyse*)

Three scenarios minimum: base case, conservative case (10–15% lower utilization, 10% construction overrun), and a stress case. What are the risk drivers, and what are the mitigations? A plan without scenario analysis looks naive — and forces the loan officer to imagine the worst.

### 13. Opening Balance Sheet (*Eröffnungsbilanz*)

The balance sheet on Day 1: assets (fixed assets after CAPEX, opening cash) versus liabilities (equity, loan balances). It demonstrates that the financing structure is arithmetically coherent.

---

## KfW Subsidy Programs for Padel Hall Projects

Section 9 of the business plan framework above asks which financing programs have been evaluated. Here's the answer your plan needs to provide.

KfW (Germany's state development bank) offers several programs relevant to padel hall construction and launch. One crucial operational detail: KfW loans are not applied for directly at KfW. They're applied for through your *Hausbank* (house bank), which passes the application to KfW and shares a portion of the default risk. This is precisely why your Hausbank cares so much about the quality of your business plan — they're on the hook too.

**KfW Unternehmerkredit (programs 037/047)**
The core investment program for established businesses. Financing up to €25 million, covering up to 100% of eligible investment costs. Most relevant if an existing company (e.g., an existing sports facility operator) is adding padel as a new business unit.

**ERP-Kapital für Gründung (program 058)**
Up to €500k in subordinated capital for startups and young companies. The key feature: it counts as equity on your balance sheet, improving your *Eigenkapitalquote* and making you more bankable for additional loan facilities. Highly attractive for new-build projects.

**KfW-Gründerkredit StartGeld (program 067)**
Up to €125k for micro-entrepreneurs. Usually too small for a full padel hall build, but can supplement a larger financing package or cover early-stage feasibility costs.

**Federal state programs (*Landesförderung*)**
Each German state (*Bundesland*) runs its own SME and startup lending programs that can be layered on top of KfW:
- North Rhine-Westphalia: NRW.BANK
- Bavaria: LfA Förderbank Bayern, Bayern Kapital
- Berlin: Investitionsbank Berlin (IBB)
- Baden-Württemberg: L-Bank
- Hamburg: IFB Hamburg
- Saxony: Sächsische Aufbaubank (SAB)

These programs are overlooked in the majority of business plans we've reviewed — even though combining them with KfW can meaningfully reduce the equity burden.

---

## The Five Most Common Weaknesses in Padel Hall Business Plans

### 1. Generic market analysis

"Padel is growing rapidly across Europe" does not justify a loan in Augsburg. What matters: How many courts are within a 15-minute drive? What are their utilization rates? Is there an identifiable demand gap, or has the local market already been addressed?

### 2. Implausible utilization assumptions

70% or 80% utilization from Month 1 appears in business plans with surprising regularity. Loan officers see it regularly too, and they discount it immediately. What's credible: a ramp-up trajectory — Year 1 at 40–50%, Year 2 at 55–65%, steady state from Year 3. Modeling a realistic ramp-up demonstrates that you understand operational risk.

### 3. No sensitivity analysis

What happens if utilization comes in 10 percentage points below plan? If construction overruns by 20%? If a court surface needs replacement after two years? These questions will be asked in the bank meeting. Having the answers prepared — ideally already modeled — is the difference between a confident conversation and an improvised one.

### 4. Incomplete CAPEX

Frequently underestimated items: architect and engineering fees, permitting fees and costs of the *Baugenehmigung* (building permit), working capital for the ramp-up period (3–6 months of operating costs), pre-opening expenses (marketing, initial inventory, pre-opening insurance), and contingency (minimum 10% of raw construction costs — 15–20% is more realistic for sports hall conversions). Forget these, and you're underfunded from Day 1.

### 5. No mention of KfW or subsidy programs

A business plan that doesn't engage with available subsidy programs sends one of two signals: either the founder hasn't done their homework, or they've investigated and found it doesn't work for their project (which itself requires explanation). Neither is a strong opening position.

---

## Personal Guarantees: What This Actually Means

For a single-site padel facility, banks will require a personal guarantee (*persönliche Bürgschaft*) from the founders. This is not a formality. It means: if the project fails, the founder's personal assets — savings, property, retirement provisions depending on structure — are exposed.

Business plans typically gloss over this point or omit it entirely. That's a mistake — not because the bank needs the reminder (they know), but because founders should have thought through the implications before signing.

Questions worth answering before you proceed:
- What is my personal net worth that could theoretically be drawn upon?
- Are there assets that could be structured outside the exposure (specialist legal advice is essential here, as pre-signing asset transfers can be challenged under German insolvency law)?
- How many months of operating losses could I absorb from personal resources?

A founder who has worked through these questions has taken the project seriously. Banks can tell.

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## How Padelnomics Helps

A bankable business plan depends on the quality of the financial model behind it. Padelnomics generates a complete P&L projection, cash flow plan, and sensitivity analysis from your facility parameters — formatted to the standard that German house banks and KfW processors expect. Not a generic template, but numbers calibrated to your specific project: number of courts, location rent, planned opening date, local market data.

The business plan export includes all 13 sections with auto-populated financial tables, a DSCR calculation across all three scenarios, and a summary of applicable KfW and state programs for your *Bundesland*.

[→ Generate your business plan]
