Business Expansion Loan

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What is a business expansion loan?

A business expansion loan is a lump sum of money that you borrow to aid your company’s growth.

Business expansion finance will help your company reach its full potential. Whether you’re looking to expand your small business products or services, purchase more facilities, or take advantage of a business opportunity.

Why do businesses choose to expand?

Businesses grow for a number of reasons. For example, you might be looking to:

• excel in your industry
• beat out the competition
• reach new markets

There are always new opportunities to take and new horizons to meet, whether your business is small or large.

Knowing the right time to expand is key. You want to make sure you can handle the extra debt and that your expansion directives will make the investment worthwhile. A business loan broker can help you prepare to apply and find finance to suit your particular business expansion needs.

Benefits of business expansion

There are as many benefits and reasons for business expansion as there are types of businesses in the world. Here are some of the key benefits of getting a business expansion loan:

• Expand product or service range
• Increase production
• Purchase new premises or equipment
• Meet increased customer demand
• Enter new national and international markets
• Grow workforce
• Take advantage of marketing and branding opportunities
• Save money on bulk purchases

Types of finance for business expansion

Some options for financing your business expansion include:

• Secured business expansion loans – A type of debt finance that uses an asset as security. You borrow the full sum of money upfront and pay it off in instalments with other fees and interest.
• Unsecured business expansion loans – Another type of business finance that doesn’t have any asset tied to the loan as collateral.
• Trade credit – A business-to-business arrangement that allows you to make payments at a later date.
• Merchant cash advance – An alternative finance option that can suit small businesses. The business receives a lump sum of money from a lender and a percentage of credit and debit card sales are used to pay it off.
• Crowdfunding – A useful and innovative option for raising funds for business expansion, particularly if you have a dedicated customer base or a unique selling point.
• Crowd-sourced funding – A government financial service for start-up businesses and small businesses.
• Government grants – A range of government business grants are available for different industries at different business stages.
• Invoice financing – Manage your cash flow by using your unpaid invoices to access cash immediately.
• Line of credit loan – A flexible finance option that allows you to continuously borrow and pay back the money as needed – up to your loan limit. Learn more: line of credit loan

Eligibility for a business expansion loan

The eligibility requirements for a loan to expand your business will depend on the individual lender. However, typically you will need to:

• Be 18 years of age or older
• Be an Australian tax resident
• Have an ABN/ACN
• Have good credit – if your credit isn’t good, a business loan broker can help determine if a business expansion loan is suitable for your circumstances

Required documents

Requirements will vary depending on your business, the lender, how much you want to borrow, and the type of finance you are seeking. But at a minimum, you will need to provide:

• ABN/ACN
• Personal identification
• Business verification

Speak to a business loan broker today to get individual assistance with the loan requirements for business expansion.

How to get a loan to expand your business

The process for getting a business expansion loan in Australia will depend on the type of business finance you seek. For example, if you apply for a secured business loan, you could apply online or in-store, following the step-by-step loan application. But if you seek alternative means of finance, like crowdfunding, you wouldn’t complete a traditional loan application.

Learn more: what to know before applying for a business loan

How easy is it to get a business expansion loan?

Applying for a business loan in Australia is no small task. Thankfully, you don’t need to approach the application process alone. A loan broker can make the process much easier, saving you time, money, and effort.

If you decide to apply for a loan, make sure to check out our business loan checklist to prepare yourself for the process.

Loans for every business

Need a business loan for another reason? Learn more about these loans below:

• Small business loan
• Low doc loan
• Cash flow finance
• Vehicle loan
• Agriculture finance
• Equipment finance