Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
---|---|---|---|---|---|---|---|
with Fundera by NerdWallet | Read expert review | Best for established business that can’t qualify for bank financing | $5,000,000 | 24 months | 10.25% | Up to 25 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Best for flexible qualification requirements | $500,000 | 12 months | 18% | Up to 18 months | with Fundera by NerdWallet | |
with Fundera by NerdWallet | Read expert review | Best for established businesses that can’t qualify for bank or SBA loans | $500,000 | 24 months | 15.22% | 6 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for borrowers with bad credit | $1,500,000 | 6 months | Undisclosed | 4 to 18 months | with Fundera by NerdWallet |
![]() | Read expert review | Best for equipment loans | $10,000,000 | 24 months | 5.99% | 24 months to 7 years | |
with Fundera by NerdWallet | Read expert review | Best for fast funding | $250,000 | 12 months | 31.3% | 18 to 24 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for inexpensive financing | Undisclosed | 24 months | Undisclosed | 12 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for low-or-moderate-income business owners | $350,000 | 12 months | 8.49% | 12 months to 5 years | with Fundera by NerdWallet |
business expansion loans: More details
U.S. Small Business Administration: Best for established business that can’t qualify for bank financing
SBA 7(a) loans can be used to purchase equipment or real estate, renovate an existing building and acquire a new business, among other options. These loans are available in amounts up to $5 million with terms up to 25 years.
SBA 7(a) loan
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Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
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Fundomate: Best for flexible qualification requirements
Fundomate has fairly generous qualification criteria compared to other lenders on this page, given its maximum loan amount. Borrowers may be able to qualify with bad credit, one year in business and $120,000 in annual revenue.
Fundomate- Business funding
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Pros
- Cash can be available in as little as 24 hours.
- Can get a discount for prepaying your loan.
Cons
- Rates can be high compared with traditional banks.
- May have to pay an origination fee.
Pros
- Cash can be available in as little as 24 hours.
- Can get a discount for prepaying your loan.
Cons
- Rates can be high compared with traditional banks.
- May have to pay an origination fee.
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iBusiness Funding: Best for established businesses that can’t qualify for bank or SBA loans
iBusiness Funding (formerly Funding Circle) offers term loans of up to $500,000 to fund your expansion project. You’ll need at least two years in business to qualify, but if you’re approved, funds can be available in as little as two days.
iBusiness Funding - Online term loan
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Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to five years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to five years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
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Fora Financial: Best for borrowers with bad credit
You may be able to qualify for a short-term loan from Fora Financial with a minimum credit score of 570. Loans can be used for a range of growth projects.
Fora Financial - Online term loan
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Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
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JR Capital: Best for equipment loans
JR Capital offers equipment loans up to $10 million, with no down payment required and competitive rates and repayment terms. Funds can be available in as little as 48 hours.

JR Capital - Equipment financing
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
OnDeck: Best for fast funding
OnDeck offers short-term loans that can be a good option if you need money quickly to seize a business opportunity. Depending on your state, same-day funding may be available.
OnDeck - Online term loan
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Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
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Bank of America: Best for inexpensive financing
Bank of America’s unsecured business loans don't require collateral and have repayment periods of up to 60 months and low interest rates compared to nonbank lenders.
Bank of America Business Advantage Unsecured Term Loan
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Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
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Accion: Best for low-or-moderate-income business owners
Accion is a nonprofit lender that specializes in providing smaller-sized loans to business owners who may not qualify for other funding options. In addition to funding, Accion provides training and coaching to help borrowers grow their businesses.
Accion Opportunity Fund Small Business Working Capital Loan
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Pros
- Loan amounts from $5,000 to $350,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Pros
- Loan amounts from $5,000 to $350,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
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What is a business expansion loan?
- Hire new employees to grow your team.
- Purchase new equipment or upgrade what you already own to improve operations.
- Renovate your existing location to accommodate added foot traffic, a new product or service, or increase efficiency.
- Open a new location to reach a larger customer base and expand your geographical footprint.
- Create and launch a new product or service to draw in additional customers or better serve your current customers.
- Expand into a new market to acquire more customers and increase revenue.
Types of business expansion loans
Business lines of credit
Equipment loans
Commercial real estate loans
Where to get a business expansion loan
Banks and credit unions
SBA lenders
Online lenders
Nonprofit lenders
Pros and cons of a business expansion loan
Pros
Cons
How to get a business expansion loan
1. Determine if you’re ready to expand
- Do you have a well-developed plan for expansion? Your plan should specify how you’re going to use any potential loan funds and how your growth plan is going to impact your business in the long-run.
- Do you have steady cash flow? You’ll need steady cash flow to repay any debt you take on, as well as manage regular business expenses. If your cash flow can’t support your expansion plans, it may be worth waiting until loan payments fit into your budget.
- Is your business in demand? Ideally, you’ll want to expand your business when you’ve seen an increase in sales or a growing customer base — and when you think there is an opportunity to continue this momentum.
2. Evaluate your qualifications
3. Compare lenders
4. Submit your application
- Basic information about your business, such as your business name and tax ID.
- Business and personal bank statements.
- Business and personal tax returns.
- Business financial statements, such as profit and loss statements and balance sheets.
- Basic information about the business owners, such as Social Security numbers and addresses.
Frequently asked questions
How Fundera by NerdWallet works
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.