Get the Finder app 🥳

Track your credit score, free

Free

Business expansion finance

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

Updated

Fact checked

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.

Valiance Finance Logo

Get access to a wide range of business finance options with Valiant Finance. Fill out this form to speak to an expert.

Valiant Finance works with a large panel of lenders that can help you find a loan for your business.

  • Access to 60+ lenders
  • Dedicated credit specialists
  • Various loan options available

Valiance Finance Lender Logos

Business lenders you can compare

Data indicated here is updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Valiant Finance Business Loan Broker
$5,000
$1,000,000
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
Prospa Business Loan
$5,000
$300,000
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $300,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary.
Max Funding Unsecured Business Loan
$2,000
$300,000
1 month to 1 year
$0 application fee
An unsecured business loan from $2,000 that offers convenient pre-approval and no early repayment fees.
OnDeck Business Loans
$10,000
$250,000
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.
loading

Compare up to 4 providers

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.

Overcome cash flow shortages

If your customers have not been paying on time, then invoice financing could be an option to overcome cash flow shortages. This type of business loans is secured by the outstanding invoices and comes with reduced risk, no asset requirements or interest payments.

Compare invoice financing products below.

Data indicated here is updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Timelio Invoice Finance
$10,000
$100,000,000
Up to 4 months
$0
Get up to 100% of the value of your invoices without having to wait for customer payments, and with no minimum turnover or operating history required.
Scottish Pacific Invoice Finance
$200,000
$100,000,000
From 1 year
No set amount
Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $200,000 in invoices.
Scottish Pacific Selective Invoice Finance
$10,000
$1,000,000
1 to 3 months
$500
Finance your unpaid invoices on demand with terms of 1 - 3 months. 95% of invoice is paid upfront, with no minimum trading history required.
loading

Compare up to 4 providers

Picture: Shutterstock

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site