Business Expansion Finance

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.

Prospa Business Loan Offer

Prospa Business Loan

  • Borrow up to $250,000
  • Same-day turnaround
  • Repay early without penalty
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100% confidential application

Prospa Business Loan Offer

The Prospa Business Loan allows you to borrow up to $250,000 for your business needs. The loan is available for new or existing business needs and features no upfront fee and no fees for early repayment.

  • Interest rate type: Variable
  • Application fee: $0
  • Minimum loan amount: $5,000
  • Maximum loan amount: $250,000
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Business lenders you can compare

Rates last updated February 25th, 2018
Name Product Min Loan Amount Max. Loan Amount Loan Term Application Fee Product Description
Prospa Business Loan
0.25 to 2 years
Apply for up to $250,000 and receive your approved funds within one business day. Note: Businesses must have a turnover of more than $5,000 per month and be able to demonstrate 6 months of trading history.
NAB QuickBiz Loan
1 to 3 years
An unsecured business loan from $5,000 that can be processed in 1 business day. Businesses that apply and are approved before 30 April 2018 are eligible for a discounted interest rate of 12.95% p.a.
Moula Business Loan
0.5 to 2 years
Small business loans of up to $250,000 approved and funded within 24 hours.
Transparent fees and rates. Note: Business must have been operating for at least 12 months and have monthly sales of at least $5,000.
Spotcap Loans
2 years
Take advantage of a fixed interest rate and no upfront fees with this business loan, available up to $400,000. Note: Business must have been operating for at least 18 months and have turnover over $200,000.
Sail Unsecured Business Loan
1 year
2.5% origination fee
Apply for up to $5,000 even if you have bad credit. Note: Business must have been operating for at least 6 months and have turnover over $50,000.
OnDeck Business Loans
0.5 to 2 years
$0 (2.5% origination fee)
Apply online for up to $150,000 with OnDeck and receive approved funds in one business day. Flexible Business Loan
0.5 to 1 years
1.5% Initial draw down fee
A 100% online business loan with amounts available from $5,000. Flexible eligibility criteria and transparent rates and fees.

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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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