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Best Business Expansion Loans

Steve NicastroNovember 21, 2019

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Business expansion loan options include SBA loans and term loans from online lenders. Compare options for your small business.

Your small business is a hit. Now you want to reinvest in your company by opening a second or third location, launching a new product or hiring more staff. A business expansion loan can provide the cash you need to finance your growth plans.

When comparing expansion loans, analyze your project to make sure your profits will exceed the total cost of the loan. Other factors to consider include the loan’s repayment period, borrowing costs, speed of funding and whether you’ll meet the lender’s minimum qualifications.

Below, we compare some business expansion loans from online lenders and choose the top options among NerdWallet’s picks. We always recommend you compare small-business loans to find the financing that best meets your needs.

Easily get real, personalized small business loan rates to compare — not just ranges or estimates.

It’s free and won’t affect your credit.

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on Lendio's website

Our picks for

Low-cost business expansion loans

SmartBiz - SBA loan

SmartBiz - SBA loan

Est. APR

6.73 - 10.29%

Min. Credit Score

650

Pros

  • Competitive rates among online lenders.
  • Faster than getting an SBA loan from a bank.

Cons

  • Must have strong financials, supported by personal and business tax returns for the past 3 years.
  • Stringent rules on use of proceeds.
  • Requires business lien and personal guarantee.

Qualifications

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $50,000.
  • No bankruptcies or foreclosures in the past 3 years.
Read full review
SmartBiz’s low-cost SBA loans work best for established businesses that want to finance an expansion or refinance debt.
Credibility Capital - Online term loan

Credibility Capital - Online term loan

Est. APR

19.99 - 24.99%

Min. Credit Score

680

Pros

  • Competitive rates among online lenders.
  • No prepayment penalty.
  • Extra monthly payments can save interest cost.

Cons

  • Short repayment term results in higher payment amounts.
  • Requires high minimum credit score and revenue.
  • Requires business lien and may require personal guarantee.
  • Not available in Nevada, North Dakota, South Dakota, or Vermont.

Qualifications

  • Minimum credit score: 680.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $250,000.
  • No bankruptcies in the past 5 years.
Read full review
Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.
Funding Circle - Online term loan

Funding Circle - Online term loan

Est. APR

12.18 - 36.00%

Min. Credit Score

660

Pros

  • Cash can be available within 3 business days.
  • Competitive rates among online lenders.
  • No minimum revenue requirement.

Cons

  • Requires business lien and personal guarantee.

Qualifications

  • Minimum credit score: 660.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: None.
  • No bankruptices in the past 7 years.
Read full review
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.

Our pick for

Fast cash, ease of qualifying

OnDeck - Online term loan

OnDeck - Online term loan

Est. APR

9.00 - 99.00%

Min. Credit Score

600

Pros

  • Cash can be available within the same business day.
  • Requires low minimum credit score.
  • Less paperwork than most lenders.

Cons

  • Fixed-fee structure means early repayment will not save interest.
  • Requires frequent (daily or weekly) repayments.
  • Requires business lien and personal guarantee.

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 3 years.
  • Minimum annual revenue: $250,000.
  • No bankruptcies in the past 2 years.
Read full review
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

Easily get real, personalized small business loan rates to compare — not just ranges or estimates.

It’s free and won’t affect your credit.

Get Started

on Lendio's website

Summary of Best Business Expansion Loans

Low-cost business expansion loans

Best option: With SmartBiz, you get access to one of the cheapest loan options for small business owners. SmartBiz provides Small Business Administration 7(a) loans with a 10-year repayment term, so your total monthly payment will likely be much lower than with other online lenders. The long terms and low rates make it a great option for expansion financing or large purchases.

SmartBiz also has a separate commercial real estate loan for small-business owners looking to buy real estate or refinance real estate debt.

Credibility Capital is a good option if you don’t qualify for an SBA loan through SmartBiz. Credibility Capital typically provides faster funding, although the loans will likely carry a higher cost than at SmartBiz and have a much shorter repayment time frame, so your monthly payments will be higher.

If you’re looking for a longer term, consider Funding Circle. The lender offers a maximum five-year repayment term compared with Credibility Capital’s three-year term. APRs between the two lenders are comparable, but they are still not as competitive as SmartBiz.

Best business expansion loan for fast cash, ease of qualifying

OnDeck offers speed and convenience as well as looser qualifications than other online lenders. You can complete the application in about 10 minutes, online or over the phone. Funding typically takes a few days to a week. This is appealing for a business owner who wants to move fast on a business opportunity, such as buying inventory at a discount.

However, OnDeck is more expensive than your other options.

Find and compare small-business loans

NerdWallet has created a comparison tool for the best small-business loans to meet your needs and goals. We gauged lender trustworthiness and user experience, among other factors, and arranged lenders by categories that include your revenue and how long you’ve been in business, so that you know which loans you qualify for.

Last updated on November 21, 2019

To recap our selections...

NerdWallet's Best Business Expansion Loans