Best Of
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.
Our picks for
Low-cost business expansion loans
6.99 - 24.99%
650
Pros
Cons
Qualifications:
12.18 - 36.00%
660
Pros
Cons
Qualifications:
Our pick for
Fast cash, ease of qualifying
9.00 - 99.00%
600
Pros
Cons
Qualifications:
| Lender | Best For | Est. APR | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Credibility Capital - Online term loan | Best for Low-cost business expansion loans | 6.99 - 24.99% | 650 | See Your Loan Options
with Fundera by Nerdwallet |
Funding Circle - Online term loan | Best for Low-cost business expansion loans | 12.18 - 36.00% | 660 | See Your Loan Options
with Fundera by Nerdwallet |
OnDeck - Online term loan | Best for Fast cash, ease of qualifying | 9.00 - 99.00% | 600 | See Your Loan Options
with Fundera by Nerdwallet |
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.
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.
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.
To recap our selections...