Business Expansion Loans: How to Finance Your Company’s Growth
You can use an expansion loan to invest in your business’s growth. Compare top options including bank, SBA and online loans.
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| 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 | low interest rates | $100,000 | 24 months | 6.5% | 12 months to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | borrowers with bad credit | $1,500,000 | 6 months | Undisclosed | 4 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | newer businesses | $250,000 | 12 months | 9.99% | 18 months to 3 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | large loan amounts | $5,000,000 | 24 months | 9.75% | Up to 25 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | working capital | $200,000 | 12 months | 14% | 6 to 12 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | fast funding | $500,000 | 24 months | 22.45% | 6 months to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | equipment loans | $250,000 | 24 months | 5.99% | 12 months to 5 years | with Fundera by NerdWallet |
business expansion loans: More details
Bank of America: Best for low interest rates
Bank of America’s unsecured term loan offers competitive interest rates and flexible repayment terms — with no collateral required.
Bank of America Business Advantage Unsecured Term Loan
with Fundera by NerdWallet
Max loan amount
$100,000
Min. credit score
700
Term length
12 months to 5 years
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.
with Fundera by NerdWallet
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
with Fundera by NerdWallet
Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 24 months
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 24 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 24 months.
- Charges an origination fee.
with Fundera by NerdWallet
Accion: Best for newer businesses
Accion is a nonprofit lender that specializes in providing loans to business owners who may not qualify for other financing options. In addition to funding, Accion provides training and coaching to help borrowers grow their businesses.
Accion Opportunity Fund Small Business Working Capital Loan
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
620
Term length
18 months to 3 years
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.
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.
with Fundera by NerdWallet
U.S. Small Business Administration: Best for large loan amounts
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.
Low interest rate
SBA 7(a) loan
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
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.
with Fundera by NerdWallet
Bluevine: Best for working capital
Bluevine offers a flexible line of credit that you can pull from as needed. This is a good option if you need ongoing access to working capital for your business expansion.
May fund quickly
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan amount
$200,000
Min. credit score
625
Term length
6 to 12 months
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
with Fundera by NerdWallet
iBusiness Funding: Best for fast funding
iBusiness Funding 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.
May fund quickly
iBusiness Funding - Online term loan
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
660
Term length
6 months to 5 years
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.
with Fundera by NerdWallet
Triton Capital: Best for equipment loans
Triton Capital offers equipment loans up to $250,000, with competitive rates and repayment terms. Funds can be available in as little as one to two days.
Triton Capital - Equipment financing
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
575
Term length
12 months to 5 years
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
- Requires higher annual revenue than other online lenders.
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
- Requires higher annual revenue than other online lenders.
with Fundera by NerdWallet
What is a business expansion loan?
A business expansion loan gives you capital to invest in your company’s growth. These small-business loans can be used to:
- 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.
Did you know...
A business expansion loan is different from a business acquisition loan. While the two share similarities, a business acquisition loan is specifically designed to finance the purchase of an existing business or franchise. If you’re looking to grow your business through an acquisition, check out our list of best business acquisition loans.
Types of business expansion loans
Different types of business loans can be used to finance your expansion. Here are several options to consider:
Business term loans
Best for: Specific expansion projects.
A business term loan is a lump sum of capital that you repay over a specific period of time, with interest.
SBA loans
Best for: Variety of use cases.
SBA loans are issued by participating lenders, typically banks and credit unions, and partially guaranteed by the U.S. Small Business Administration. Several types of SBA loans, including 7(a) loans and 504 loans, can be used to expand or grow your business.
Business lines of credit
Best for: Working capital for growth projects.
Similar to credit cards, business lines of credit are a revolving source of capital, which means you can spend up to a certain limit and only pay interest on the money you’ve drawn. Once you’ve paid down your balance, you can continue to draw on the same line.
Equipment loans
Best for: Equipment purchases.
Equipment loans are used to purchase large pieces of equipment or machinery. These loans are typically structured as term loans. Because equipment loans are secured by the item you’re purchasing, they may be easier to qualify for than traditional loan options.
Commercial real estate loans
Best for: Buying business property.
Commercial real estate loans function similarly to consumer mortgages, and are used to buy business property, such as office space, warehouses or storefronts.
Where to get a business expansion loan
You can get a business expansion loan from several sources, including:
Banks and credit unions
- Provide a variety of loan types, including term loans, lines of credit and equipment financing.
- Offer low interest rates, long repayment terms and large loan amounts.
- Must meet strict criteria to qualify, including excellent credit, strong finances and multiple years in business.
- May require collateral to secure your loan.
SBA lenders
- Participating lenders, like banks and credit unions, that issue SBA loans.
- May offer different types of SBA loans, including 7(a) and 504 loans.
- Loan rates and terms may vary, but subject to SBA guidelines.
- Can be easier to qualify for than a bank loan, but still need relatively strong credentials.
Online lenders
- Can provide a range of financing types.
- Have streamlined applications and can fund loans quickly.
- May be willing to work with startups and/or borrowers with bad credit.
- Tend to charge higher interest rates and offer shorter terms compared to traditional lenders.
Nonprofit lenders
- Usually specialize in funding traditionally underserved borrowers, such as women, veterans and minority groups.
- Often issue smaller-sized loans (i.e. microloans).
- May be more willing to work with startups and borrowers with bad credit.
- Typically provide business assistance, like training, coaching and other educational resources — in addition to funding.
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Want to compare multiple business expansion loan options at once? Consider working with a business loan marketplace, like Fundera by NerdWallet. Submit one application, get personalized matches and work with lending specialists to choose the best funding for your needs. Nerdy Tip
Pros and cons of a business expansion loan
Pros
- Helps you capitalize on opportunities to add long-term value to your business.
- Provides capital without selling your company’s equity.
- Can be low cost if you have strong credentials.
Cons
- Debt payments can strain cash flow.
- Assets can be at risk if a loan is secured.
- May require a long and slow application process.
How to get a business expansion loan
Follow these steps to get the right expansion loan for your business.
1. Determine if you’re ready to expand
Before looking for an expansion loan, make sure that your business is ready for growth and that you’re prepared to take advantage of new financing. Here are some questions to ask yourself to help you make that decision:
- 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 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.
Once you decide that you’re ready for an expansion loan, confirm how much funding you need and determine which type of business loan is right for your needs.
2. Evaluate your qualifications
Most lenders will consider your personal credit score, time in business and annual revenue when underwriting your loan application. If you’re getting a business expansion loan to buy property or equipment, the lender may request a valuation or appraisal of that property or equipment.
Some lenders may also look at your cash flow, financial accounts and available collateral, among other criteria. Review your business qualifications ahead of time so you know where you stand.
3. Compare lenders
Explore and compare multiple lenders to find the best business expansion loan for your needs. When looking at different options, consider factors such as business loan rates, repayment terms, loan amounts, funding speed and customer service. It can also be helpful to research the lender and read reviews from other small-business owners.
4. Submit your application
The business loan application process will vary from lender to lender. Typically, online lenders require minimal documentation, whereas banks and SBA lenders will be more detailed.
In general, you can expect to provide:
- 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.
After you submit your application, it can take anywhere from a few days to a few weeks — or more — to receive funding. Online lenders may be able to fund your business expansion loan within a few days, whereas banks and SBA lenders may take a few weeks or even months.
Frequently asked questions
To get money to expand your business, you can tap into your personal savings, get venture capital from investors, set up a crowdfunding campaign or take on debt through a small-business loan. You could also apply for free funding in the form of small-business grants.
You could expand your business with an SBA 7(a) or 504 loan, a standard bank loan or a term loan from an online lender. You could also use equipment financing, a line of credit or a microloan. The right loan type will vary based on your needs.
An expansion loan can be a good option if you’ve determined your business is ready for growth and it can handle taking on new debt. Ideally, you’ll find a loan option that offers favorable interest rates and repayment terms, so that you can move your business forward in the most sustainable way.
Last updated on January 5, 2026
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Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
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