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Best Business Expansion Loans October 2024

When it's time to scale up your business, expansion loans pave the way. Whether you're eyeing a new storefront, diving into fresh markets, or upgrading to cutting-edge equipment, the right loan makes all the difference. Your perfect fit hinges on factors like the loan amount, repayment duration, and interest rates. Dive in and discover the best loan tailored to your business's unique ambitions.

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Editor's Choice
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Key Facts

  • Credit Score: 550
  • Age of business: Minimum 12 months
  • Monthly revenue: Varies
  • US citizenship: Required for all owners
  • Term length: Varies

Pros

pros iconMultiple financing options designed to help businesses grow and succeed

pros iconConvenient shop and comparison tool

pros iconFree service

pros iconMatched with experienced Funding Advisor who helps every step of the way

Cons

cons iconLoan terms and conditions not disclosed until after completing an application

cons iconOnce deciding upon a product, you’ll work with the lender instead of Fundera

cons iconPotentially high interest rates and eligibility requirements

LIMITATION OF LIABILITY AND WARRANTY DISCLAIMER. 10.1 Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL FUNDERA (OR OUR SUPPLIERS) BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY LOST PROFITS, LOST DATA, COSTS OF PROCUREMENT OF SUBSTITUTE PRODUCTS, OR ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES ARISING FROM OR RELATING TO THESE TERMS OR YOUR USE OF, OR INABILITY TO USE, THE SITES OR SERVICE, EVEN IF FUNDERA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ACCESS TO, AND USE OF, THE SITES OR SERVICE IS AT YOUR OWN DISCRETION AND RISK, AND YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR DEVICE OR COMPUTER SYSTEM, OR LOSS OF DATA RESULTING THEREFROM. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, OUR LIABILITY TO YOU FOR ANY DAMAGES ARISING FROM OR RELATED TO THE SERVICE OR THESE TERMS OF SERVICE (FOR ANY CAUSE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, DAMAGES ARISING FROM YOUR FAILURE TO PROVIDE FUNDERA WITH ACCURATE INFORMATION OR TO CORRECT INACCURATE VERIFIED DATA, OR A THIRD PARTY’S FAILURE TO CORRECTLY VERIFY SUCH INFORMATION, AND REGARDLESS OF THE FORM OF THE ACTION), WILL AT ALL TIMES BE LIMITED TO A MAXIMUM OF ONE HUNDRED US DOLLARS (U.S. $100). THE EXISTENCE OF MORE THAN ONE CLAIM WILL NOT ENLARGE THIS LIMIT. YOU AGREE THAT OUR SUPPLIERS WILL HAVE NO LIABILITY OF ANY KIND ARISING FROM OR RELATING TO THESE TERMS OF SERVICE. SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. 10.2 No Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THESE TERMS OF SERVICE, THE SITES AND THE SERVICE PROVIDED HEREUNDER BY FUNDERA IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, AND FUNDERA (AND OUR SUPPLIERS) EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES AND CONDITIONS OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, QUIET ENJOYMENT, ACCURACY OR NON-INFRINGEMENT. WE (AND OUR SUPPLIERS) MAKE NO WARRANTY THAT THE SITES AND THE SERVICE WILL MEET YOUR REQUIREMENTS, WILL BE AVAILABLE ON AN UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE BASIS, OR WILL BE ACCURATE, RELIABLE, AND/OR FREE OF VIRUSES OR OTHER HARMFUL CODE, COMPLETE, LEGAL, OR SAFE. IF APPLICABLE LAW REQUIRES ANY WARRANTIES WITH RESPECT TO THE SITE AND THE SERVICE, ALL SUCH WARRANTIES ARE LIMITED IN DURATION TO NINETY (90) DAYS FROM THE DATE OF FIRST USE. NO ADVICE OR INFORMATION PROVIDED BY FUNDERA SHALL CONSTITUTE ANY WARRANTY WITH RESPECT TO YOUR USE OF THE SERVICE. FUNDERA DOES NOT GUARANTEE OR ASSUME ANY RESPONSIBILITY FOR ANY SERVICE ADVERTISED OR OFFERED BY ANY THIRD-PARTY SERVICE RELATING TO EITHER FUNDERA OR ANY FUNDING PROVIDER. FUNDERA MAKES NO GUARANTEE AS TO THE NUMBER OF FUNDING PROVIDERS WITH WHOM YOU MAY BE MATCHED USING THE SERVICE, NOR DOES FUNDERA GUARANTEE THAT YOU WILL BE ABLE TO OBTAIN BUSINESS FUNDING IN ANY AMOUNT USING THE SERVICE, INCLUDING FROM ANY FUNDING PROVIDER FOR WHOM YOUR VERIFIED INFORMATION PROVISIONALLY PREQUALIFIES YOU FOR SUCH FUNDING. YOU UNDERSTAND AND AGREE THAT FUNDERA IS NEITHER A FUNDING PROVIDER NOR A FINANCIAL ADVISOR, AND NOTHING ON THE SITES IS INTENDED TO BE A SUBSTITUTE FOR PROFESSIONAL FINANCIAL ADVICE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. SOME JURISDICTIONS DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. 10.3 Not a financial planner, investment adviser or tax advisor. NEITHER FUNDERA NOR THE SERVICES ARE INTENDED TO PROVIDE LEGAL, TAX, INVESTMENT OR FINANCIAL ADVICE. FUNDERA IS NOT A FINANCIAL OR TAX PLANNER, AND DOES NOT OFFER LEGAL ADVICE TO ANY USER OF THE SERVICE. ALTHOUGH THE SERVICE MAY PROVIDE DATA, INFORMATION, OR CONTENT RELATING TO INFORMATIONAL SERVICES FOR U.S. BASED SMALL BUSINESS OWNERS INCLUDING INFORMATION AND REFERRALS FOR CERTAIN FINANCIAL SERVICES, YOU SHOULD NOT CONSTRUE ANY SUCH CONTENT AS TAX, LEGAL, FINANCIAL, OR INVESTMENT ADVICE.

  • $5K-$5M Loan Amount
  • 550 Min Credit
  • 7-30% APR
  • 12+ Months Time in Business
Quick Funding
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Key Facts

  • Eligibility: Businesses with less than 500 employees
  • Max loan amount: $10 million
  • Interest rate: 0.5%
  • Loan forgiveness for: payroll, mortgage interest, rent, utilities

Pros

pros iconFlexible on credit score. Getting approved is based more on strong balances and revenue.

pros iconVariety of loan types available

pros iconSoft credit check for the initial application

pros iconSave time with offers from multiple lenders

Cons

cons iconApplication process is a bit long for a marketplace because it requires 3 bank statements

cons iconSince Lendio is not a direct lender, the terms only become clear after applying for a loan

  • $1K-$5M Loan Amount
  • 500 Min Credit
  • 6+ Months Time in Business
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Key Facts

  • Credit score: depends on lender
  • Age of business: min. 12 months
  • US citizenship: required
  • Repayment terms: depends on lender
  • Term length: varies

Pros

pros iconMultiple business financing options available, ranging from small business loans to commercial real estate loans to lines of credit

pros iconStreamlined, intuitive application process with lender comparison option

pros iconTime to funding could be within 24 hours

pros iconTop-notch customer service team of finance professionals

Cons

cons iconAs a marketplace, specific terms, rates, and fees are not indicated until you apply with a partner lender

By indicating your agreement to these terms (for instance, by clicking the button), you, in your individual capacity, represent:

  • That you are authorized on behalf of the business listed in the application (the “Applicant”) to make and submit this application, to submit any accompanying documents, and to provide the consent and authorizations set out below.
  • That, should this application be approved, you are authorized to sign business financing documentation on behalf of the Applicant. Please be advised that some business financing products may require a personal guaranty.
  • That all information provided to Lendzi and/or its trusted partners is accurate and complete and that you will immediately notify Lendzi of any change in such information.
  • That Lendzi and its trusted partners may rely on the accurateness of the information provided.
  • That Lendzi may share all information and documents, excluding consumer credit reports, with its trusted partners to fulfill Applicant’s requests.
  • That Lendzi and its trusted partners may share information they have about you and Applicant at any time for administrative, marketing and servicing purposes as permitted by law and that your personal information may be shared with the Applicant as part of the underwriting process.
  • That you and the Applicant waive and release any claims against any information provided relating to the release of information.
  • That you agree to and accept all terms of the Lendzi Credit Gathering Authorization found here.

BY USING DH & RK Investments LCC dba Lendzi’S WEBSITE AND/OR REQUESTING THAT Lendzi CONTACT YOU FOR MARKETING PURPOSES, YOU AGREE TO ARBITRATE ALL CLAIMS BETWEEN YOU AND Lendzi (AND ANY ENTITY CALLING ON BEHALF OF Lendzi) ON AN INDIVIDUAL BASIS ONLY AND NOT AS A PART OF ANY CLASS. A “CLAIM” IS ANY CASE, CONTROVERSY, DISPUTE, TORT, DISAGREEMENT, LAWSUIT, LEGAL ACTION, OR CLAIM NOW OR HEREAFTER PENDING BETWEEN YOU AND Lendzi, INCLUDING BUT NOT LIMITED TO ANY ALLEGED STATE OR FEDERAL STATUTORY VIOLATION, OR ANY DISPUTE OVER THE INTERPRETATION OF THE TERMS OF APPLICATION OR THE ARBITRABILITY OF ANY CLAIM PURSUANT TO THE TERMS OF APPLICATION. THIS AGREEMENT TO ARBITRATE GOVERNS ALL PAST, CURRENT AND PROSPECTIVE INTERACTIONS WITH Lendzi. YOU AGREE THAT YOU ARE WAIVING ALL RIGHTS TO: (A) A TRIAL BY JURY; (B) PARTICIPATE IN A CLASS ACTION LAWSUIT OR CLASS ACTION ARBITRATION; AND (C) BRING AN ACTION AGAINST Lendzi IN A COURT OF LAW. YOU MAY INDIVIDUALLY ARBITRATE ANY CLAIM AGAINST Lendzi IN ANY JURISDICTION IN THE UNITED STATES. THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION THEN IN FORCE SHALL GOVERN THE ARBITRATION (provided, however, that the terms of the Lendzi Terms of Application and Terms of Use shall control over any inconsistency between the Rules of the American Arbitration Association and the Terms of Application). The arbitrator shall have authority to interpret the Terms of Application, including but not limited to the authority to decide whether any claim is arbitrable under the Terms of Application and to decide issues related to the scope of arbitration, the rules of arbitration, the arbitrator’s jurisdiction, and the enforceability of the Terms of Application. You agree that the Terms Application involves commerce under 9 U.S.C. Sections 1 et seq. and that this Arbitration Clause is governed by federal law, including the Federal Arbitration Act. The remainder of the Terms of Application is governed by the laws of the state of Utah, as provided in the Terms of Use.

YOU UNDERSTAND THAT THIS IS AN APPLICATION FOR A COMMERCIAL LOAN AND THAT ANY LOAN FUNDS OFFERED TO APPLICANT MAY NOT BE USED FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES.

IMPORTANT INFORMATION ABOUT OPENING A NEW ACCOUNT

Federal law requires all financial institutions to obtain, verify and record information that identifies each person and entity that opens an account or establishes a relationship with such institution, including name, address, date of birth, social security or tax identification number and other information that will allow the financial institution to verify your and/or the entity’s identity. You may also be asked to provide identifying documents.

  • $1K-$1M Loan Amount
  • 500 Min Credit
  • 12+ Months Time in Business
Easy Application
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Key Facts

  • Automated analysis matches businesses with financing products
  • Direct lender and marketplace expands loan options
  • Gives feedback if declined to enhance chance of future eligibility

Pros

pros iconFunding possible within 24-72 hours of a signed and approved contract.

pros iconVariety of financing options available from Biz2Credit and other participating lenders.

pros iconFree online application and free use of business tools.

pros iconDedicated support from financing experts.

Cons

cons iconMay be an expensive option due to closing fees.

cons iconFinancing options may differ from state-to-state.

cons iconNo live chat option on their website.

cons iconUndisclosed interest rates and fees

Biz2Credit Disclosure: By accessing or applying for Business Finance Services from Biz2Credit relating to your potential business funding or other business financing products, you expressly accept and agree to both our Terms of Service and the Business Finance Services Terms & Conditions. The rates and terms and conditions here in are not a commitment or guaranty by Biz2Credit Inc. or any of its affiliates to provide financing, and are subject to change at any time. Not valid in all states. All products and services are subject to eligibility and other conditions and restrictions. Biz2Credit Inc. is not a lender. All terms and conditions and credit decisions are at the sole discretion of the lender. Offered for commercial uses to businesses only. Other terms, conditions, fees and restrictions may apply.

You acknowledge that you do not own the account you use to access the Service, nor do you possess any rights of access or rights to data stored by or on behalf of Biz2Credit on Biz2Credit servers. You agree that Biz2Credit has the absolute right to manage, regulate, control, modify and/or eliminate any such data as it sees fit in its sole discretion, in any general or specific case, and that Biz2Credit will have no liability to you based on its exercise of such right. All data on Biz2Credit’s servers are subject to deletion, alteration or transfer. Notwithstanding any value attributed to such data by you or any third party, you understand and agree that any data, account history and account content residing on Biz2Credit’s servers, may be deleted, altered, moved or transferred at any time for any reason in Biz2Credit’s sole discretion, with or without notice and with no liability of any kind. Biz2Credit does not provide or guarantee, and expressly disclaims, any value, cash or otherwise, attributed to any data residing on Biz2Credit’s servers.

  • $25K-$6M Loan Amount
  • 575 Min Credit
  • 12+ Months Time in Business
Editor's Choice
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Key Facts

  • Multiple types of funding, nationwide
  • Get help from a loan representative
  • Highly rated customer support

Pros

pros iconEasy way to compare business loans from over 35 lenders

pros iconPartners with large, established lenders such as Bluevine, OnDeck, and Funding Circle

pros iconLoan decisions are made quickly after an easy application process

Cons

cons iconNo transparency of loan terms readily available

cons iconLoan funding can take up to one week, which is longer than competitors

cons iconCollateral is required from some of BusinessLoans.com’s lending partners

BusinessLoans.com allows users to obtain information about certain loans, financial products, and services offered through third-party service providers and advertisers. BusinessLoans.com is not an agent or advisor to you or any other third party.

You acknowledge and agree that our website is solely an intermediary to connect users with service providers to obtain information about certain financial products and services. You acknowledge and agree that we are not a financial institution, credit card issuer, or other financial service provider and that any information or advice made available through the Services is for informational purposes only.

We do not, and will not, create any coverage or credit decision with any service provider that may be referred to you through our Services. We do not (i) validate the licensing, certification, or other qualifications of Service Providers that you may encounter through our Services, (ii) guarantee the terms or rates offered by any third party through or on our Services, or (iii) issue credit cards or any other financial products.

We are not responsible for the conduct or policies of the service providers. The terms and rates provided by any service provider will be subject to the applicable terms and conditions of the products and services offered by the service providers.

  • $5K-$3M Loan Amount
  • 640 Min Credit
  • 12+ Months Time in Business
Quick Funding
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Key Facts

  • Credit score: 625
  • Age of business: 12+ months
  • Monthly revenue: $8,000
  • Personal guarantee: Required
  • US citizenship: required, or permitted residency
  • Term lengths: Up to 24 months

Pros

pros iconTerm loans from $5,000 to $250,000; lines of credit from $6,000 to $100,000

pros iconSame-day funding

pros iconNo hard credit pulls

Cons

cons iconNot all industries are eligible

cons iconDoes not lend in North Dakota

cons iconInterest rates can be high compared with traditional lenders

Same Day Funding is only available in certain states for term loans up to $100K. The eligibility window is Monday-Friday before 10:30am EST. If checkout completes before 10:30am EST, funds will be available by 5pm local time the same day. If checkout occurs after 10:30am EST or on a weekend or bank holiday, it will not qualify for Same Day Funding, and funds will be deposited within 2-3 business days. Eligibility rules around creditworthiness and length of term loan apply.
Eligibility for the lowest rates is limited, available only to businesses with the strongest creditworthiness and cash flows, and typically companies that have shown an excellent payment history on prior loan products with OnDeck. The average rate for term loans is 62.1% APR, and the average rate for lines of credit is 48.9% APR. Averages are based on loans originated in the half-year ending March 31, 2022.

  • $5K-$250K Loan Amount
  • 625 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Credit Score: 650
  • Age of business: 1 Year
  • Monthly revenue: $25,000
  • Origination fee: 0-2%

Pros

pros iconQuick approval time

pros iconFast time to funding

pros iconGood track record

pros iconFlexible repayment options

Cons

cons iconNo transparency on rates

cons iconAdditional fees sometimes necessary

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

  • $10K-$500K Loan Amount
  • 650 Min Credit
  • 12+ Months Time in Business
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Pros

pros iconUltra-fast funding available

pros iconA low minimum credit score of 625

pros iconAvailable to businesses who have been active for 6 months

pros iconOnly pay for the portion of the line of credit that you use

Cons

cons iconThe rate of borrowing is expensive

cons iconOnly two repayment terms (6 and 12 months)

cons iconThe monthly revenue requirement of $10,000 will price out many businesses

Bluevine is a financial technology company, not a bank. Banking Services provided by Coastal Community Bank, Member FDIC. Bluevine accounts are FDIC insured up to $3 million per depositor through Coastal Community Bank, Member FDIC. The Bluevine Business Debit Mastercard® is issued by Coastal Community Bank, Member FDIC pursuant to a license from Mastercard International Incorporated and may be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Application is subject to approval. No monthly or maintenance fees. Card Replacement Fees and Wire Transfer Fees may apply.

Certain Bill Pay funds, including Bill Pay with Credit Card, are held by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). Banking Services for payments made via ACH or wire from the Bluevine Business Checking Account are provided by Coastal Community Bank, Member FDIC.

Bluevine’s Flex Line of Credit is issued by Celtic Bank, a Utah-chartered Industrial Bank, Member FDIC. Applications are subject to credit approval. Rates, credit lines, and terms may vary based on your creditworthiness and are subject to change. Additional fees apply.

PPP loans are made by one or more approved U.S. Small Business Administration (SBA) lenders. Loan agreements will identify the issuing lender to small businesses at signing. Qualified applications will be submitted to the SBA as soon as possible. Bluevine does not guarantee that applications will be processed and submitted before PPP funds are no longer available. Approval and loan forgiveness are subject to your availability to meet government-set eligibility requirements.

Certain financing may be made or arranged pursuant to California Financing Law-License No. 6054789.

  • $6K-$250K Loan Amount
  • 625 Min Credit
  • 6+ Months Time in Business
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Key Facts

  • Credit score: 550
  • Age of business: 18+ months
  • US citizenship: Required for all owners
  • Repayment terms: Varies
  • Term length: 3-60 months

Pros

pros iconFast time to funding

pros iconLow barrier to entry

pros iconQuality customer support team

pros iconGood track record

Cons

cons iconNot the most competitive rates

*Small Business Financial Solutions, LLC offers term loans and lines of credit (pursuant to its California Lenders License No. 603-I855) and factoring in California. Small Business Financial Solutions, LLC and Rapid Financial Services, LLC offer term loans, lines of credit and factoring outside of California. Commercial Servicing Company, LLC arranges term loans and lines of credit in California (pursuant to its California Finance Lenders License No. 603-J299) and arranges term loans, SBA loans, lines of credit, factoring, asset-based loans, commercial real estate loans and business credit cards outside of California.

  • $5K-$1M Loan Amount
  • 550 Min Credit
  • New Time in Business
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Pros

pros iconReceive a business line of credit within 24 hours

pros iconFewer hurdles to go through than with traditional loan financing

pros iconAccepts businesses with only six months of trading history

pros iconNo fees or prepayment penalties

Cons

cons iconHigh APRs compared to traditional business loan funding

cons iconOnly short-term loans are available

cons iconNot practical for equipment purchasing, only working capital management

Fundbox makes capital available to businesses through business loans and lines of credit made by First Electronic Bank, a Utah chartered Industrial Bank, member FDIC, and invoice-clearing advances, business loans, and lines of credit made directly by Fundbox.

  • $1K-$150K Loan Amount
  • 600 Min Credit
  • 6+ Months Time in Business
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Key Facts

  • Credit Score: 570
  • Age of business: 12 months
  • Monthly revenue: $20,000
  • Origination fee: 3%

Pros

pros iconSuccessful applications receive funding in less than 72 hours

pros iconDiscounts available for early repayment of loans

pros iconLow credit threshold for loan eligibility

pros iconGood customer service and A+ BBB rating

Cons

cons iconUses factor rating instead of APR, which makes comparing with other loan offers difficult

cons iconOnly short-term loans are available

cons iconMinimum age of business to qualify is 12 months

Fora Financial provides business capital, including business loans and Revenue Based Financing, directly and through a network of unaffiliated third-party funding providers. Business loans are offered by Fora Financial Business Loans LLC or, in California, by Fora Financial West LLC, a licensed California Finance Lender, License No. 603J080. Fora Financial Advance LLC offers Revenue Based Financing. Business capital is also made available through US Business Funding, a sister company of Fora Financial. The products and amounts offered vary by state.

  • $5K-$1.5M Loan Amount
  • 570 Min Credit
  • 12+ Months Time in Business

Top Business Expansion Loan Providers

Fundera Logo
Fundera

Get funded faster than at your bank

550

Min Credit Score

Min 7%

APR. Fixed Rate

7-30%

APR. Variable Rate

$5K-$5M

Loan Amount

1-10 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

24 Hours

Funding Time

$130K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Multiple financing options designed to help businesses grow and succeed
  • con-icon Convenient shop and comparison tool
  • con-icon Free service
  • con-icon Matched with experienced Funding Advisor who helps every step of the way
  • con-icon Loan terms and conditions not disclosed until after completing an application
  • con-icon Once deciding upon a product, you’ll work with the lender instead of Fundera
  • con-icon Potentially high interest rates and eligibility requirements

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Invoice Financing
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
  • Startup Loans

640

Min Credit Score

Min 9%

APR. Fixed Rate

$5K-$3M

Loan Amount

1-20 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

24 Hours

Funding Time

$240K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Easy way to compare business loans from over 35 lenders
  • con-icon Partners with large, established lenders such as Bluevine, OnDeck, and Funding Circle
  • con-icon Loan decisions are made quickly after an easy application process
  • con-icon No transparency of loan terms readily available
  • con-icon Loan funding can take up to one week, which is longer than competitors
  • con-icon Collateral is required from some of BusinessLoans.com’s lending partners

Business Loan Types

drop-down-btn
  • Business Line of Credit
  • Business Term Loan
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
Lendio Logo
Lendio

Buying, Building, or Renovating Your Business

500

Min Credit Score

Min 6%

APR. Fixed Rate

$1K-$5M

Loan Amount

1-30

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

$96K

Annual Revenue

6+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Flexible on credit score. Getting approved is based more on strong balances and revenue.
  • con-icon Variety of loan types available
  • con-icon Soft credit check for the initial application
  • con-icon Save time with offers from multiple lenders
  • con-icon Application process is a bit long for a marketplace because it requires 3 bank statements
  • con-icon Since Lendio is not a direct lender, the terms only become clear after applying for a loan

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Business Term Loan
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Startup Loans

Types of Loans for Business Expansion

You may be able to get small business expansion loans or other forms of financing through a traditional lender like a bank or credit union. Or you can apply through a private lender online or the U.S. Small Business Administration (SBA). Here are the main types of loans available for growing your business:

  • Short and long term loans: This common type of business loan comes with a repayment term that varies from around 3-months to several years. Amounts range from about $25,000 to $500,000, though you may be able to find larger or smaller loans. The interest rate on a term loan is typically fixed, which means that it will not change over the life of the loan. You can use these for an array of business reasons.
  • Business line of credit: A line of credit lets you borrow against a credit limit as needed. It can be useful if you’re trying to expand your business or need to cover everyday operating costs. You’ll have to pay back what you borrow plus interest.
  • Equipment financing: This option lets you buy new equipment for your business. You’ll need to pay back what you owe plus interest, and the equipment itself is used as collateral for the loan.
  • Merchant cash advance: If you have temporary expenses or are experiencing an emergency, this could help. It tends to be expensive, so use it sparingly.
  • Invoice financing: With this, you sell unpaid invoices to a lender. Once the customer pays the invoice, the lender will give you a percentage of the total amount (minus any fees). It’s a good way to get fast cash for your business.

Expansion Loans: Uses And Requirements

If you own a small business, you might not have the capital you need in order to grow and expand. A loan for business expansion can provide you with the necessary funds to boost your business’s financial growth. You can use a small business expansion loan for many things, including:

  • Hiring more staff
  • Upgrading machinery or equipment
  • Opening a new location
  • Launching a new service
  • Expanding a product line
  • Marketing to reach new customers
  • Renovating or remodeling your current business space
  • Meeting investors’ expansion requirements
  • Reinvesting in other areas to help your business grow

Eligibility Requirements

The eligibility requirements for business expansion loans vary depending on the lender, but there are some general requirements that most lenders will require. These include:

  • The business must be in good financial standing. This means that the business has a positive cash flow, is profitable, and has a good credit history with low debt-to-income ratio.
  • The business must have a clear plan for how the loan will be used. This plan should include details about the expansion project, the cost of the project, and how the loan will be repaid.
  • The business must have sufficient collateral. This collateral can be in the form of real estate, equipment, or inventory. Your business may also need to bring in a minimum annual revenue or be established.
  • The business owner should have a good credit score. This is not always a requirement, but it will improve your chances of getting approved for a loan if your credit score is above 670.

If you meet these requirements, you will be in a good position to qualify for a business expansion loan.

Business Expansion Loans: What to Consider

Typically, you’ll need to have an already established business to qualify for small business expansion loans. This is because most lenders want to see that your business will continue to grow and that you will repay what you borrow. You’ll also need to meet certain annual revenue requirements and have a minimum credit score.

As a business owner, you might also have to put forth a down payment to get a business loan. Lenders also usually require you to have a solid business plan and at least six months — sometimes more — of success.

A loan for business expansion comes with its own set of terms, rates, additional fees, and requirements. Be sure to vet several lenders to see what’s available based on your business and credit profile. The best loans will have a low annual percentage rate (APR), flexible terms, and be enough to cover what you need.

Practical Terms You Should Know

  • Maximum loan amount: Loans for business expansion vary from around $25,000 to a couple of million dollars.
  • Repayment term: Terms depend on the financing type. It typically ranges from a few months to several years.
  • Interest rate: Your annual percentage rate (APR) varies widely based on the loan type and your creditworthiness. For example, an SBA 7(a) loan has a maximum interest rate of prime plus 4.75%. A term loan, meanwhile, could have an interest rate of up to around 30%.
  • Additional fees: Some lenders charge additional fees, such as origination fees (this occurs when you get the loan). You may also have to pay a down payment to secure funding.
  • Time to approval/funding: This depends on the loan and lender, but is usually a few days to a few weeks.
  • Licensing and reputation: Your lender should be licensed to operate in your state. They should also have good reviews on sites like the Better Business Bureau (BBB).

How to Get a Small Business Expansion Loan

Getting a loan for business expansion can vary by lender, but here are the typical steps:

  1. Think about your expansion plans. Calculate how much money you need for your business expansion, how much it will cost, and what specific expenses you will use the loan for. Also, think about whether you need a one-time loan or a line of credit you can regularly access.
  2. Get your finances in order. Lenders will want to see that your business is financially stable before they approve you for a loan. This means having good credit, positive cash flow, and a solid business plan.
  3. Compare lenders and loan options. Research several lenders to see what they offer. See what types of financing they have and their typical rates and terms. Check their requirements to make sure you’re eligible, too.
  4. Gather your documents. Once you know what’s required, it’s time to get your documents together. This may include federal tax returns for your business, bank statements, legal documents (ex. licensing), and a business plan.
  5. Apply for the business expansion loan. You can either apply online or in person, depending on the lender. Complete the application process and be prepared to provide supporting documents upon request.
  6. Wait until you’re approved. The lender will review your application to determine whether to approve or deny it. This process varies by lender but can take up to a few weeks.

It's important to remember that the loan application process can be lengthy and requires careful planning and preparation. Be sure to research your options, gather all necessary documentation, and carefully review the loan terms before signing an agreement.

Pros and Cons

Business expansion loans come with benefits and drawbacks, which you should consider before taking one out.

Business Expansion Loans Pros

  • Can expedite your business’s growth: Business expansion loans can provide you with the capital you need to grow your business. This can include things like opening a new location, expanding into new markets, or investing in new equipment.
  • Improved cash flow: A business expansion loan can help you improve your cash flow by providing you with a lump sum of money that you can use to cover expenses. This can free up your working capital so that you can invest it in other areas of your business.
  • Increased profits: A business expansion loan can help you increase your profits by allowing you to grow your business. This can lead to increased sales, higher margins, and a stronger bottom line.

Business Expansion Loans Cons

  • Requirements: May have strict lending requirements (ex. time in business, credit score, or annual revenue minimums)
  • Interest and repayment terms: Business expansion loans typically have interest payments, which can add to your monthly expenses. They usually also have repayment terms of several years, which can make it difficult to repay the loan if your business experiences a downturn.
  • Collateral: Lenders may require you to put up collateral for a business expansion loan. This could be in the form of real estate, equipment, or inventory.

Should You Get a Loan for Business Expansion?

Small business expansion loans may be a good idea if you:

  • Have reached a point where you want to grow your business but don’t have the funds
  • Have a strong credit profile and meet the lender’s minimum requirements
  • Make enough annual revenue to qualify
  • Are prepared to pay back what you borrow plus any fees or interest
  • Know exactly why you need the funds
  • Can comfortably manage your company’s expansion

Remember, a loan for business expansion is a major commitment. Compare different lenders and options to make sure you choose the right one for your business’s needs.

Average Business Expansion Loan Rates

The rates, terms, and requirements of a loan for business expansion vary by lender. With that in mind, here are some of the best small business expansion loans available:

Lender* Typical APR (Fixed) Typical Loan Term Loan Amount Time to Funding Recommended Minimum Time in Business Recommended Minimum Credit Score
Biz2credit 4% to 36% 12 to 36 months $25,000 to $6M 72 hours 6 months 575
Nav Varies Varies Up to $10M 24 to 72 hours 12 months 600
Fundera 7% to 36% Variable $5,000 to $5M+ 24 hours to 30 days 1 year 600
OnDeck Starting at 29.90% Up to 24 months $5,000 to $250,000 48 to 72 hours 1 year 625
National Funding Varies 4 to 24 months $5,000 to $500,000 24 hours 6 months 600
Quickbridge Varies Variable Up to $500,000 24 hours 6 months 580

*Rates and terms are subject to change

The Bottom Line

Navigating the complex world of business expansion loans can be daunting, but understanding your options is the key to unlocking your company's full potential. From the traditional routes of banks and credit unions to the innovative solutions provided by online private lenders and the U.S. Small Business Administration, there are myriad avenues to secure the funding you need. As with any major business decision, it's essential to do your due diligence. Compare lenders, understand the fine print, and ensure that the loan aligns with your long-term business strategy. With the right loan, your vision for growth can become a tangible reality, propelling your business into its next exciting chapter. Safe expansion endeavors!