How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 7 business expansion loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA business expansion loans | $5,000,000 | 650 | with Fundera by NerdWallet |
Bank of America Business Advantage Unsecured Term Loan Read Review | 4.9/5 Best for Bank business expansion loans | Undisclosed | 700 | Read Review |
iBusiness Funding - Online term loan | 4.6/5 Best for Online expansion loans for established businesses | $500,000 | 660 | with Fundera by NerdWallet |
OnDeck - Online term loan | 4.9/5 Best for Short-term business expansion loans | $250,000 | 625 | with Fundera by NerdWallet |
Fora Financial - Online term loan | 4.8/5 Best for Business expansion loans for bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan Read Review | 4.8/5 Best for Microloans for business expansion | $250,000 | 600 | Read Review |
JR Capital Equipment Financing | 4.1/5 Best for Equipment loans for business expansion | $10,000,000 | 620 | with Fundera by NerdWallet |
Here are 7 business expansion loans
Best for SBA business expansion loans
Best for Bank business expansion loans
Best for Online expansion loans for established businesses
Best for Short-term business expansion loans
Best for Business expansion loans for bad credit
Best for Microloans for business expansion
Best for Equipment loans for business expansion
I'M INTERESTED IN:
Our pick for
SBA business expansion loans
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
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Qualifications:
- For-profit U.S. business.
- Unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
Our pick for
Bank business expansion loans
Bank of America unsecured business loans don't require collateral, have repayment periods of 12 to 60 months and fixed rates that start at 7.50%.
Bank of America Business Advantage Unsecured Term Loan
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.
Bank of America Business Advantage Unsecured Term Loan
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.
Qualifications:
- Minimum credit score: 700.
- Minimum time in business: 24 months.
- Minimum annual revenue: $100,000.
Our pick for
Online expansion loans for established businesses
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
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven 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.
iBusiness Funding - Online term loan
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven 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.
Qualifications:
- Minimum credit score: 660.
- Minimum time in business: 24 months.
- Minimum annual revenue: $50,000.
- No bankruptcies in the past seven years.
Our pick for
Short-term business expansion loans
OnDeck offers short-term loans from $5,000 to $250,000 that can be a good option for specific business investments. Repayment terms are available for up to 24 months.
OnDeck - Online term loan
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.
OnDeck - Online term loan
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $100,000.
- Must have business bank account.
Our pick for
Business expansion loans for bad credit
You may be able to qualify for a short-term loan from Fora Financial with a minimum credit score of 570 and six or more months in business. Loans are available in amounts up to $1.5 million and can be used for a range of growth projects.
Fora Financial - Online term loan
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.
Fora Financial - Online term loan
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.
Qualifications:
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
Our pick for
Microloans for business expansion
Accion offers smaller-sized loans to business owners who may not qualify for other funding options. This nonprofit lender also provides training and coaching to help its borrowers grow their businesses.
Accion Opportunity Fund - Small Business Working Capital Loan
Pros
- Loan amounts from $5,000 to $250,000.
- 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.
Accion Opportunity Fund - Small Business Working Capital Loan
Pros
- Loan amounts from $5,000 to $250,000.
- 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.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 12 months.
- Minimum annual revenue: $50,000.
Our pick for
Equipment loans for business expansion
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.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
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.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Qualifications:
- Minimum credit score: 620.
- Minimum time in business: Typically 24 months, but can prioritize industry experience in some cases.
- No minimum annual revenue requirement.
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.