Business expansion loans

Business expansion loans will give you the necessary support to grow.

1. Online Loans

Online loans are the easiest type of loans to obtain for business expansion funding. Online Lenders don't have many requirements and process the loans really fast. Some lenders can approve and fund the loan as fast as the same day you apply. Online Loans usually have higher interest rates and shorter terms.

2. Term Loans

Term loans are one of the more popular business expansion funding. Term loans are usually processed by banks, and are typically 10 year terms, with a set interest rate between 9-15%. The issue with Term-Loans is that they have a long application process and takes a while to get approved.

3. SBA Loans

SBA loans can also be a good option for business expansion capital, depending on your financial situation. These loans are mostly insured by the government, giving the lenders less risk. The best SBA loan for expansion is the 7(a) loan, which can be used for a wide range of purposes, including working capital, equipment purchases, loan consolidation and buying real estate. SBA loans are similar to banks when it comes to rates and terms. The downside of the SBA loans are that they have very strict requirements, for example, you need to have shown a profit on the past 3 years tax returns.

4. Business Lines of Credit

A business line of credit can be a great source in providing you the business expansion capital that you need. The way a line of credit is set-up, you'll be able to draw as much money you need up to a set limit. Obviously it's the best type of financing a business can have, because you only pay interest on money that you use. But, it's the toughest financing solution to get approved.

Securing business expansion funding can really be beneficial for a business’s growth, expansion and long-term success.

1. Your situation

Before applying for a business expansion loan, have a look at your business's financial situation. What's your credit score, do you have other debt, how quickly do you want the fund. Also decide on what type of loan you need. 

With those two factors in mind you should get a rough idea on what type of loan you'll be looking for.

2. Documents

Depending on the loan that is right for you, Have all the necessary documents ready. That can include bank statements, tax returns, and proof of ownership. 

3. Find the right Lender

Research lenders and what their requirements are. Then apply with a lender that provides the financial solution that you need.