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Best Business Expansion Loans

Business expansion loan options include SBA loans and term loans from online lenders. Compare options for your small business.
Steve NicastroApril 1, 2021
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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.

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Our picks for

Low-cost business expansion loans

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Credibility Capital - Online term loan

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Est. APR

6.99-24.99%

Min. Credit Score

650

Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.

Pros

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

Cons

  • 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.
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Qualifications:

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $200,000.
  • No bankruptcies in the past 5 years.
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Funding Circle - Online term loan

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Est. APR

12.18-36.00%

Min. Credit Score

660

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.

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.
  • Not available in Nevada.
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Qualifications:

  • Minimum credit score: 660.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: None.
  • No bankruptices in the past 7 years.
May fund quickly

Our pick for

Fast cash, ease of qualifying

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OnDeck - Online term loan

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Est. APR

9.00-99.00%

Min. Credit Score

600

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

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.
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Qualifications:

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $100,000.
  • No bankruptcies in the past 2 years.
May fund quickly

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Summary of Best Business Expansion Loans

LenderBest ForEst. APRMin. Credit ScoreNext Steps

Credibility Capital - Online term loan

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Best for Low-cost business expansion loans6.99-24.99%650
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Funding Circle - Online term loan

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Best for Low-cost business expansion loans12.18-36.00%660
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OnDeck - Online term loan

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Best for Fast cash, ease of qualifying9.00-99.00%600
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Low-cost business expansion loans

Best option: SBA 7(a) loans will be one of the most affordable loan options for small-business owners. These loans have long terms and low rates, making them a great option for expansion financing or large purchases.
To qualify for an SBA loan, you'll generally need to have at least two years in business, strong annual revenue and a good credit score (690+).
Credibility Capital is a good option if you don’t qualify for an SBA loan. Credibility Capital typically provides faster funding, although the loans will likely carry a higher cost and have a shorter repayment time frame, so your monthly payments will be higher.
If you’re looking for a slightly longer term, consider Funding Circle. The lender offers a maximum five-year repayment term compared with Credibility Capital’s maximum four-year term. APRs between the two lenders are comparable, but they are still not as competitive as SBA financing.

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

If none of the loans included here works for you, or if you'd like to compare loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lenders' market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.
Last updated on April 1, 2021

To recap our selections...

Best Business Expansion Loans

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