Business Finance

Business Expansion Finance

Information verified correct on October 24th, 2016

Looking to expand? Here’s what you need to know about obtaining business finance.

When you own a business, expansion is a frequent consideration. This might be because of increased revenue, the need for more employees or plans for an additional location. Expanding a business takes money, and if you have insufficient cash reserves or don’t want to put a strain on your cash flow, you can consider business expansion finance.

NAB QuickBiz Loan

NAB QuickBiz Loan Offer

The NAB QuickBiz Loan allows you to borrow up to $50,000 for your business needs. The loan is available for new or existing business needs and features no upfront fee and tax deductible interest repayments. Link your accounting software directly into the application.

  • Interest Rate From: 13.85% p.a.
  • Interest Rate Type: Fixed
  • Application Fee: $0
  • Minimum Loan Term: 1 year
  • Maximum Loan Term: 2 year
  • Minimum Loan Amount: $5,000
  • Maximum Loan Amount: $50,000

Business lenders you can compare

Rates last updated October 24th, 2016
Min Loan Amount Max. Loan Amount Loan Term Application Fee
NAB QuickBiz Loan
An unsecured business loan from $5,000 that can be processed in 3 business days.
$5,000 $50,000 1 to 2 years $0 Go to site More
Bigstone Small Business Loan
Take advantage of a tailored rate and competitive financing from Bigstone’s business loans marketplace
$10,000 $250,000 1 year $0 until funding Go to site More
Spotcap Loans
Get access to a line of credit for your small business with a loan from Spotcap
$5,000 $250,000 1 year 2-3% of loan amount Go to site More
A business line of credit that allows you to earn Qantas Aquire Points
$5,000 $300,000 0.25 to 1 years Upfront fee of 1% Go to site More
Max Funding Business Loan
Get a business loan with a decision in 5 minutes with your money on the same day if you're eligible. Tax deductible interest repayments
$1,000 $500,000 1 to 3 years $0 Go to site More
Business Fuel
A convenient business loan that gives you access to your approved funds in three days or less.
$5,000 $250,000 0.25 to 1 years $0 Go to site More

When will business owners typically require business expansion loans?

Whether you’re starting a new business or expanding an existing one, you’ll need some form of cash on hand to see things through. By expanding you could enhance the long-term health of your business and it could also yield a considerable return on investment.

Business expansion is not merely about expanding into a larger facility. It could also involve the following:

  • Having sufficient working capital for boosting production levels or hiring additional staff
  • Diversifying your range of products or services offered
  • Opening additional locations
  • Venturing into international markets

How business owners can get loans for expanding their businesses

As a business owner you might know that depending on the money obtained from customers can be difficult because it’s erratic. An inconsistent source of income may not be sufficient for meeting payroll expenses, raw material costs or for funding new projects. This is why you might require credit to take your business ventures to the next level.

By preparing a sound financial strategy, you could convince lenders of the value of your expansion plans. Before approaching a lender for a business expansion loan, take the following steps:

  1. Prepare a financial strategy for expanding your business with your accountants
    • If you’re planning to open a second location, determine whether you plan to lease the property or purchase it.
    • Factor in the size of the property, acquisition or lease expenses, overhead expenses, and employee-related expenses (including recruitment, training and payroll expenses).
  2. Organise your paperwork, including copies of your business licence, insurance and bank statements
  3. Ascertain key details such as your net margins and debt-to-equity ratio
  4. Approach banks and lenders for a loan based on the size of your business
    • Some lenders offer loans especially suited for small businesses, while others prefer dealing with larger business enterprises.
    • Compare the terms of the loan and finalise your lender.

What kinds of business loans do lenders typically offer?

Many lenders offer business loans in Australia. These loans let you meet various short-term or long-term business needs. The most common types of business loans include:

  • Business start-up loans:
    If you want to open a second location with a different range of products, this loan is ideal. You can use this loan for purchasing tools, supplies or equipment.
  • Business expansion loans:
    If you need to purchase additional equipment or set up another office or sales outlet, a business expansion loan fits the bill.
  • Business inventory loans:
    Some businesses cannot expand because they do not have a big enough inventory of stock to meet customer demand. These loans let you purchase additional products, supplies or materials to enlarge your existing inventory.
  • Business vehicle loans:
    Extra vehicles for your business may help you serve a wider range of clients.
  • Equipment and tool loans:
    Use these loans for purchasing industrial equipment and other tools for your production plants – this can be useful in both purchase and lease situations.
  • Business property loans:
    These loans are worth considering if you want to acquire commercial property to expand your existing business.
  • Trade loans:
    If you plan to venture into import-export or domestic trading, consider a trade loan. Supported by the Australian government, these loans help expanding businesses to focus on industry longevity.

If you’re looking to expand, there’s a variety of options for you to consider. By finding out all of your options and comparing what’s available you can secure the best type of finance to give your business the boost it needs.

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